Shipbuilders struggle to get out of the red despite multi-billion dollar orders
CSSC The shipbuilding industry’s eternal capability to lose money even when raking in billions of dollars of orders forms a key plank of broker BRS’s annual review. The 170-page report, one of the shipping market’s must-reads every year, covers all the main segments of the industry. On the shipyard business, BRS stated: “Shipbuilding is not an industry that makes money,” going on to point out how Korean majors such as Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries have regularly been in the red in recent years. “There is an urban legend in the shipbuilding industry that shipbuilders make a profit when prices rise. Unfortunately, sometimes, building costs increase quicker,” BRS stated, adding:... View more
