Ship Repairer Market Expected To Thrive in 2023
After going through a difficult 2-year period brought about by the pandemic and the global economic crisis, the ship repairer market is due for an upswing. Predictions for the rest of the year are primarily optimistic across various industries, particularly for shipyards across Europe, the Mediterranean, and the Black Sea.
It bodes well for companies such as Merrimac Marine, which provides innovative ship repairers insurance solutions for helping shipbuilders and repairers deal with common industry risks. With all the developments slated for the rest of 2023, companies in the maritime trade would do well to partner with firms such as Merrimac Marine.
Upcoming Trends for 2023 for the Ship Repairer Market
What are some expected developments in the ship repairer market for the rest of the year? Shipyards in the areas mentioned above can look forward to a sharp increase in bookings due to higher demand for repair and retrofitting projects. Many will involve retrofitting existing vessels with parts and components that ensure better environmental compliance.
Perhaps more significant over the long term is the possibility of the pandemic being much less of a factor. Some even predict a new era for the ship repairer market.
A report released by shipbroker Intermodal predicted that this development would have a marked effect on shipyards worldwide. Even the inflation of repair costs of sea vessels may taper out as the market corrects itself after the economic turmoil of the previous years.
Add to this the altering of global shipping routes and higher demand for European repair facilities. These factors will pressure shipyards to prepare for more work in the coming months.
Green Tech Continues
A critical development is the continued push to adopt green technology, which is noticeably more mature than ever. As the rest of the year goes on, ship repair firms can expect more projects involving adopting more environmentally-friendly solutions.
Yet another development involves retrofitting ballast water management systems for existing ships. After over a decade of contention, this sector will likely end in the next few months.
Inflations Tapers Off
Adjusting pre-inflation prices is more than just a matter of the market correcting itself. As explained by Vassilis Vassiliou of the Interyards Division of Intermodal, there was significant inflation in the cost of steel and copper toward the end of 2022. It was also apparent in energy-consuming projects such as grid and hydro blasting.
These inflated costs caused significant disruption in many large-scale projects, many of which calculated basic costs from such projects. They also affected project expenditures, most planned months in advance.
Shipyards and repairers have traditionally encountered considerable challenges during periods of heavy market inflation. On the one hand, these firms have had to deal with continuously higher prices from suppliers. On the other hand, they’ve also had to meet the expectation of shipping firms for stable prices in line with previously agreed-upon contracts.
A Brighter Future for the Maritime Industry
All these factors will provide valuable opportunities for new companies to break ground in their respective industries and become established players. Ultimately, this should result in these companies getting a more significant share of the ship repair trade. And with the shift in operations to the Far East and the planned opening of Chinese ports, there is finally some optimism for the immediate future of the global shipping industry.
About Merrimac Marine Insurance
At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.