Cut in shipbuilding capacity needed

SHIPYARDS face one of their toughest years in recent history, even as they try to adjust to new economic realities, said a paper presented at the Posidonia shipping event in Greece.

This is bad news for shipbuilders, though many in the Greek and Asian shipowning communities will no doubt see this as a time of opportunity. They would be right - but only from a short-termist's perspective.

In his paper, "An Overview of the Current State of the Shipbuilding Market", Dalibor Gogic, principal analyst for marine publications and consultancy company IHS Maritime & Trade, said the major shipbuilding nations' typically protectionist policies will be put to the test. He expects competition between these nations to intensify as a consequence of diversification in other sectors.