SMM Market Survey Published

A large-scale study asking exhibitors and visitors of SMM to give their assessment of the sector’s economic and technological development. They key findings of the SMM Maritime Industry Report is quoted below. Source: Hamburg Messe und Congress.

Ship-owning companies plan to invest

For the first time a "Maritime Industry Score" was computed based on the outcome of ta survey by HMC the organizer of SMM. “We want to hold regular business climate surveys in future to find out more about the mood in the industry," says Claus Ulrich Selbach from HMC responsible for SMM. 

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.

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 J?rg 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.