• 2017 November 29 16:50

    SMM Maritime Industry Report: Sector sees light at the end of the tunnel

    For the first time in its history, Hamburg Messe und Congress GmbH has conducted a large-scale study asking exhibitors and visitors of the leading global trade fair for the maritime industry to give their assessment of the sector’s economic and technological development. The SMM Maritime Industry Report shows that the industry is looking to the future with confidence, and reveals the key issues that are on everybody's mind. 

    Reflecting the views of more than 2500 participants from 69 countries, many of whom hold senior positions in the maritime industry, the SMM Maritime Industry Report, prepared jointly by Hamburg Messe & Congress GmbH (HMC) as the organiser of SMM, and the market research institute mindline, presents a good impression of the prevailing sentiments in the industry. "Our first comprehensive industry survey is a great source of inspiration as we prepare for the next SMM in September 2018," says Bernd Aufderheide, President and CEO, Hamburg Messe und Congress GmbH. While the maritime industry has gone through difficult times, it is now ready to tackle the future with a can-do spirit. "The results of the SMM Maritime Industry Report are a very valuable source of information for us in aligning the SMM itself and the accompanying conferences with the needs of the industry," the CEO of the Hamburg trade fair organisation points out. Nearly ten months before it opens its doors, SMM is almost fully booked. "This underscores the role of SMM as the world's leading industry fair, and it shows how much value companies assign to personal interaction, expert input and tangible technological progress, especially in turbulent times,” says Aufderheide.

    Big response and top-flight participants

    "We asked the exhibitors and visitors of SMM about the top items on their agendas, and how they gauge their economic perspectives," says Claus Ulrich Selbach, Business Unit Director – Maritime and Technology Fairs & Exhibitions at HMC. Respondents included representatives of shipowning companies, shipbuilders and suppliers from around the world. In addition to the economic and technological development the survey also addressed planned investments. “I haven’t heard of any other study covering the industry in such breadth,” said Hauke Schlegel, Managing Director of the Marine Equipment and Systems working group at the German engineering industry association VDMA. The participation profile is a representative cross-section of the entire industry:

    • Roughly three quarters (74 per cent) of respondents were SMM visitors, and one fourth (24 per cent) were exhibitors.

    • Nearly one fifth of respondents (19 per cent) work at a shipowning company, 13 per cent are employed by a shipyard, and the majority (67 per cent) work at a supplier.

    • 72 per cent of respondents hold a senior position at their company, and approximately two thirds (65 per cent) make investment decisions, either alone or in a team.

    Ship-owning companies plan to invest

    For the first time a "Maritime Industry Score" was computed based on the outcome of the survey. This score reflects the business expectations of shipowning companies, shipyards and suppliers. “We want to hold regular business climate surveys in future to find out more about the mood in the industry," says Claus Ulrich Selbach. In the wake of an economic lull that has lasted nine years, the results of the current survey betray a certain basic optimism across the maritime sector, in spite of expectations of a continuing consolidation process. The overall Maritime Industry Score was 54.6 points, with the shipping segment's 33.2 points clearly lagging behind shipbuilding (47.1 points) and the supply industry (61.9 points). These figures represent the ratio of positive versus negative growth expectations. The surprisingly positive outcome proves that the industry is beginning to see light at the end of the tunnel.

    There are signs of hope even among shipowners. Some of the players clearly view the growth prospects as positive, indicating an increasing willingness to invest, as one particular survey result reveals: 20 per cent of responding decision-makers consider it as ‘very likely’, and an additional 12 per cent as ‘likely’ that they will order new ships within the next 12 months. "This is especially surprising considering the fact that this value is far above the typical fleet rejuvenation rate," comments Dr Max Johns, Managing Director of the German Shipowners Association VDR.

    Strong interest in LNG

    There is one particular field in the shipbuilding segment where the need to act is felt especially urgently: Following the entry into force of the Ballast Water Convention of the International Maritime Organisation (IMO) in early September 2017, 54 per cent of responding shipowner CEOs intend to retrofit their ships accordingly. 

    Stricter environmental regulations are also causing a stir in the ship propulsion segment. The industry is homing in on LNG as an alternative to conventional ship fuels. 44 per cent of respondents said LNG is their first choice when contemplating ship newbuilding orders. But hybrid solutions based on marine diesel are likewise popular. "There is no way around the energy transition in the maritime sector. The increasing number of newbuilding orders and retrofits shows that LNG is gaining ground. The future of low-emission shipping has long begun," says Dr Reinhard Lüken, General Manager, German Naval Architecture and Ocean Engineering Association (VSM). The supply industry agrees, with 49 per cent of respondents saying they consider LNG as the champion among alternative fuels.

    Another item high up on the agenda is Autonomous Shipping: 36 per cent of shipowner executives believe it to be the future of merchant shipping. 90 per cent of those in support believe that the use of unmanned ships will be routine in as little as 20 years. "We have seen an enormous shift in public opinion here," says VDR managing director Johns. The two-decade horizon is not a far-fetched prospect, considering the average service life of a ship, he adds.

    Study lends fresh impetus to SMM

    The maritime sector is already showing great interest in remote monitoring of ships and ways to protect ships against cybercrime. "The opportunities and challenges of digitalisation are on everybody's mind in this industry. Therefore this topic will play a key role at SMM 2018, for example during the Maritime Future Summit," says Business Unit Director HMC Selbach. New technologies that can be helpful in optimising processes and increasing efficiency are in demand. Accordingly, 66 per cent of respondents from supply companies see a “high" or "very high" sales potential for their products in the market. Three out of four (74 per cent) have observed that innovative technology is being welcomed by customers. The responding suppliers believe that the German, Chinese and US markets have the highest growth potential. Overall nearly 70,000 global contacts where utilised in the online survey for the SMM MIR. More than 2500 respondents answered every single question. "This is a better response than what many comparable surveys have been able to achieve," says project lead Jörg Kunath from mindline. HMC plans to conduct the SMM Maritime Industry Report every two years in order to draw a continuous picture of the maritime industry mood.

    About SMM

    The leading international maritime trade fair takes place in Hamburg every two years. More than 2.200 exhibitors and roughly 50,000 visitors are expected to attend the trade fair in the famous port city from 4 to 7 September 2018. SMM covers all segments of the maritime value chain, bringing together decision-makers from around the world and highlighting innovative technology.

    Related links:

    Hamburg is hosting SMM on 4 – 7 September 2018 >>>>

    More about the event >>>>


2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships
11:16 Inland Ports meet in Paris to talk about the innovation potential of inland ports
10:50 IMO agrees possible outline for maritime “net-zero framework”
10:24 Hapag-Lloyd to continue to avoid the Red Sea route
09:58 QatarEnergy enters time charter agreements with Nakilat for the operation of 25 LNG vessels

2024 March 24

16:18 Inchgreen Marine Park upgraded as part of £11m investment
15:14 A ribbon-cutting ceremony for Solent Rail Terminal Rail was held at the Port of Southampton
14:08 ESNA and Strategic Marine join forces to offer Surface Effect Ship (“SES”) Crew Transfer Vessels (“CTV”) to the market
13:07 First LNG powered vessel calls at HIP
12:49 Inter-array cable installation completed at Neart na Gaoithe offshore wind farm
11:32 Equinor ASA posts net income at USD 11.9 billion in 2023
09:25 Edda Wind announces the sale of Edda Passat