Industry and globalisation

Workshop on Factors Impacting Prices and Costs for Shipbuilding: Towards Smoother Sailing?


On 29 November 2022, the Secretariat of the OECD Council Working Party on Shipbuilding invited representatives of OECD and partner economies as well as interested stakeholders to a workshop which focused on factors impacting prices and costs for shipbuilidng: towards smoother sailing?

The workshop provided an opportunity for a range of stakeholders and policymakers to discuss the developments and increases of input prices to the shipbuilding industry and their impact, as well as possible ways to address them. Please find a summary of the key takeways here.



Opening remarks by Jens LUNDSGAARD, Deputy Director of the Science, Technology and Innovation Directorate, OECD.

Presentation by Luisa RODRIGUEZ, Economic Affairs Officer, UNCTAD, on UNCTAD’s Review of Maritime Transport 2022.


Session 1: Overview of the Current and Upcoming Drivers of Ship Prices

1-1. Shipbuilding Cost Index
Presentation by Paul STOTT, Senior Lecturer in Marine Production and Shipping Market Analysis, Newcastle University, Marine, Offshore and Subsea Technology, School of Engineering, on a cost index for the shipbuilding sector.
Paper by Dr. Paul Stott, Newcastle University on the effects of the fundamentals of the market on ship prices, November 2022.

1-2. Steel for the Shipbuilding Industry
Presentation by Matthew WATKINS, Principal Analyst on Steel, Commodities Research Unit (CRU), on the latest developments in the steel markets and notably regarding steel plate prices.
Presentation by Fabien MERCIER, Economist, Structural and Industry Policy Division of the Science, Technology and Innovation Directorate, OECD, on the latest developments of the steel markets and of related policies.

1-3. Marine Equipment & Supply Chain
Presentation by the Shipbuilding Unit of the Structural and Industry Policy Division, OECD, on marine equipment and related policies.

Session 2: Energy Markets, Environmental Regulation and Technological Change

2-1. Fuelling the Transition: the Impact of New Technologies and Alternative Fuels on Ship Prices
Presentation by Elizabeth CONNELLY, Energy Technology and Transport Analyst, International Energy Agency, on future fuel demand for the shipping industry.
Presentation by Tristan SMITH, Associate Professor in Energy and Transport, University College London, impact of technology changes on ship prices and the cost of reducing GHG emissions in shipping.

2-2. Financing the Transition: Investments to Adapt to Environmental Regulation
Presentation by Christos CHRYSSAKIS, Business Development Manager, DNV, on the cost of decarbonizing shipping: how much and who will pay?


Session 3: Impact on Shipyards and Shipowners and Their Responses

3-1. Impact of Input Price Developments on Ship Prices and Freight Rates
Presentation by Heesung YUN, Professor, Korea Maritime and Ocean University, on the Understanding the Pricing mechanism of Newbuilding ships.

3-2. Actions Taken by Shipyards to Address Recent Price and Volatility Increase in Key Input Markets and Decarbonisation Policies
Presentation by Mehtap Karahallı ÖZDEMİR, Secretary General, Turkish Shipbuilders’ Association (GISBIR) on the access to technology and retrofitting.

3-3. Actions Taken by Shipowners for the Decarbonisation of Shipping
Presentation by Georgia SPENCER-ROWLAND, Senior Adviser on Shipping Policy, International Chamber of Shipping, on the actions taken by ship owners for the decarbonisation of shipping.
Presentation by Jim CORBETT, Environmental Director for Europe, World Shipping Council, on shipping decarbonisation in the liner sector.

Session 4: Looking Forward: Implications for Policy and Future Work

4-1. Outlook for the Shipbuilding and Shipping Markets / Environmental Policy Prospects
Presentation by Jenny N. BRAAT, Chair of the Working Group on market forecasts, SEA Europe, on the outlook for ship requirements.
Presentation by Camille BOURGEON, Technical Officer, Marine Environment Division, International Maritime Organization, on environmental policy prospects.

4-2. Policy Perspectives
Interventions by selected WP6 Delegates on shipbuilding policy perspectives.
Takanori MAEDA, Director, International Affairs Office, Shipbuilding and Ship Machinery Division, Maritime Bureau, Japan’s Ministry of Land, Infrastructure Transport and Tourism.
Javier ARREGUI ALVAREZ, Team Leader, Unit E3 - Industry, Goods, Energy, Customs and Origin, DG TRADE, European Commission.
Martin NYGAARD, Adviser, Department of Maritime Policy and Coastal Development, Norway’s Ministry of Trade, Industry and Fisheries.
Ji-Won KIM, Deputy Director, Department of shipbuilding and offshore plant, Korea’s Ministry of Trade, Industry and Energy.


Concluding remarks by Halvor HVIDEBERG, Ambassador and C-WP6 Chair, Permanent Representative of Norway to the OECD.





More about OECD work on shipbuilding


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