Finance
The Shipbuilding Indicators
As a result of globalization, most economists are continuing to predict continuous and steady growth in world trade despite the recessionary signs in the U.S. That's a plus for the shipping industry -- and another set of statistics reflects that the industry is already aware of and reacting to the growing demand for shipping capacity. Commercial shipbuilding is undergoing the biggest boom that experts can remember, driven by the worldwide increase in trade. In 2005, orders were received by shipyards for about $100 billion worth of vessels. By 2007, the value of orders on the books had reached about $264 billion, according to an article in Der Spiegel magazine. About 5,300 new ships were expected to be launched by
Looking Ahead
No one wants to underplay the shortterm, often-localized economic pain that typically accompanies a recession. This is especially true if workers are losing their jobs and having to scramble to find other employment. But in insurance, we try to take the long view. And in this case, we feel justified in having a strong sense of opti-
mism about the future for our customers in the maritime industry. It is important to remember that economic slowdowns are cyclical, and that demand worldwide continues to drive economic expansion. The shipping industry has sound fundamentals and should see continued growth opportunities in the months and years ahead. Those of us who partner
with you through insurance coverage know that the world can be a risky, dangerous place for shippers - but for now, the forecast tells us to persevere through the choppy economic waters and prepare for smooth sailing on the rising demand of globalization.
While international economic fears persist, the forces of globalization and the buoyant shipbuilding market indicate the maritime markets will stay strong in the near future.
early 2010. The increased demand for capacity spans all sorts of vessels: container ships, tankers to transport oil and liquid gas, and ore ships. In fact, leading shipbroker Clarkson has reported that tankers are being built at the fastest rate since that company began keeping records in 1852. The oil tanker fleet expanded 3.8 percent in 2007, and is expected to grow 32 percent during the next five years, according to Lloyd's Register-Fairplay.
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