Shipyards across Europe, the Mediterranean and the Black Sea are expected to be fully booked during 2023, as a multitude of projects, many of which will be environmental retrofits, are expected to take place. Shipbroker Intermodal said that “while observing the ship repair market very closely to the end of the year, we are confident shipyards worldwide are entering a new era”.

In its latest weekly report, Intermodal said: “The year 2023 is going to see the pandemic being almost completely out of the picture. The effect of inflation on ship repair costs will start being harmonised and balanced after major corrections are made in all aspects throughout the past year. The altered shipping routes and consequently the increased demand for ship repair facilities in some areas like Europe will finally find the yards ready for more projects.

“It is obvious the mentality regarding the adaption of green technology is more mature than ever. We are expecting more projects and trends implementing environmentally friendly solutions and technology. And finally, the ballast water management system retrofit era is coming to an end, after more than a decade of discussions.”

According to Vasssilis Vassiliou, business manager, Interyards division of Intermodal, “all respective costs related to materials procurement like steel, copper, and energy consuming works like grid and hydro blasting are highly inflated”. He said: “As a result, there was a big disruption in many large-scale projects on which basic cost derives from this kind of work and on project prices of which were agreed a long time before.

“Historically, the shipyard’s position during a heavily inflated market was always challenging. Shipyards on the one side have to manage the continuously increasing cost from the supplier’s side and on the other hand to manage the expectation of the shipping companies for stable fixed prices with contracts agreed much ahead of vessel’s arrival to the yard”.

Vassiliou added that “apart from the ongoing environmental regulatory framework, there is an increased tendency on the part of shipyards worldwide to adapt more environmentally friendly procedures and methods regarding the disposal of used / hazardous materials and ship repair techniques”.

He said it is well known some yards have completely transformed from grid-blasting to hydro or slurry blasting for controlling or eliminating the grid dust. “A result of the yards implementing green solutions is repair cost and time increment. Unfair competition is obviously a common result between those greener shipyards and those able to maintain old regime methods,” said Vassiliou.

Filed: 2022-12-20