270 Scientific Journal of Maritime Research 34 (2020) 270-281 © Faculty of Maritime Studies Rijeka, 2020 Multidisciplinary Multidisciplinarni SCIENTIFIC JOURNAL znanstveni časopis OF MARITIME RESEARCH POMORSTVO https://doi.org/10.31217/p.34.2.8 Global shipbuilding activities in the modern maritime market environment Mirano Hess, Ivan Filip Pavić, Serdjo Kos, David Brčić University of Rijeka, Faculty of Maritime Studies, Studentska 2, 51000 Rijeka, Croatia, e-mail: hess©pfri.hr;
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[email protected] ABSTRACT ARTICLE INFO The international trade, in the long run being influenced primarily by global economy, is hardly Preliminary communication imaginable without maritime transport of goods. The investors in the shipping market, i.e. Received 5 November 2020 shipowners, foresee the key return of their capital investments through collection of the freight KeyAccepted words: 2 December 2020 payments. Consequently, the position and ultimately survival of the owners is intensely influenced with the freight rate cycles, which in turn depend on demand and supply of ships. As historically proved, the higher the freight rates, the more orders for new ships are secured by shipyards. Most Shipping industry of the factors that impact shipowners’ decisions, especially those related to placing the orders, thus Freight rates extend their influence towards shipyards’ operations and earnings. Competition among shipyards Shipbuilding to ever attract more shipowners and secure more new orders or higher value orders, results in Newbuilding prices expanding their facilities, shortening delivery dates, making their ships’ design more appealing, lowering prices, etc. Observing fluctuations of the market and understanding impact factors on the freight rates’ segment and on shipbuilding segment therefore, is a crucial occupation accompanying executive decision making process for both, shipbuilders and shipowners.