ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)432
Vol.1981/0135

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4
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)432final
Brussels .14thSeptember 1981
REPORT ONTHESTATE OFTHE
SHIPBUILDING INDUSTRY INTHECOMMUNITY
(SITUATION ASAT1JANUARY 1981)
V"·,!,■'!
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COM(81)432final

Summary
ThisdocumentisthethirdreportpresentedbytheCommissiontothe
Councilonthedevelopment ofthecrisisfacingthe.shipbuiIding
Tncustry. --x ■ - ,;\
Insomeseatransportsectors,particularly oiltankers,themaritime
economywasdepressedin1980,leadingtoalackofdemandand,conse­
quently,alookofneworders.Thesamelevelofactivitywas'maintained
insomeothersegmentsoftheseatransportmarketanddemandwasstable
following afortuitousreductionincarryingcapacity.Overall,however,
newordersforvessels'remainedstagnantattheverylowlevelofprevious
yearsandsuchordersbeingconcentrated inJapantothedetrimentof,.
theEuropeanshipyards.Worldshipbuilding productioncontinuedtodropi
^in1980;thisdropwasmoremarkedintheCommunity,whereasJapanese
productionactuallyincreasedslightly. -
ThereversalofthetreadinJapanisoneoftheworryingkfeatureswhich.
.developed ;during1980,sinceitdoesnotcorrespondtoabasicchangein
themarketconditions and-givesrise-bycausingfuturerequirements to-
bebroughtforward-toJapanese .encroachmentonthemarketsofother
countries,particular .Europeancountries,whosemarketshare ,isthus
furtherretracting .
TP.c18%dropinproductionintheCommunitywasaccompanied byan8%
dropinemployment,bringingthenumberof.workerswhohavelosttheir
jobssincetheonsetofthecrisisto84000,i.e.some40%..
"rodepressedgeneraleconomicclimateandthelatentovercapacity would
seem-to'indicatethattheshipbuilding industrywillnotrecoverinthe
future.TheCommunityshipbuilding industrymustthereforecontinue'
its-effortstoadjusttothisstateofaffairs,inparticularbyimproving
itscompetitiveness ,andthepublicauthorities musttakethemost
c.p.o.-cpriatesupportingmeasures. -

CONTENTS
Ir.xro.ci.uc.fi on.< . 2
2_Generaleconomicbackground
3.Trendsintheseatransportsector 3
4.Situationof,theshipbuilding industry 7
4.1Generaltrends 7
4.2SituationintheCommunity 9
4.2.1°"Oûuct;orv 9
4.2.2Neworders TQ
4.2.3Orderbooks 14
4.2.4Employment 15
4.3Marketprospects\ 17
4.**Structural develop.nents -20
5.Conclusions ,22.x
Appendix

REPORTONTHESTATEOFTHESHIPBUILDING INDUSTRYINTHECOMMUNITY
Situationasat1January1981-
• • y .t, ■■ '
1.Introduction - • ■*
TheCounciIResolution'of19September1978*calledontheCommission
topresentperiodicalreportsonthestateofshipbuiIding.Thisdocu­
mentistheCommission'sthirdsuchreport.Likethepreviousreports,**
itseekstosetoutthestateandprospectsoftheshipbuilding market.
Theshipbuilding industrydidnotimprovein1980andsomepromising
signswhichappearedin1979faded:apartfromthefewsectionsofthe
marketwherethesamelevelofactivityhasbeenmaintained,overall ,
demandforvesselshascontinuedtostagnate.Thetendencytooperate
thefleets'lessrationally,aphenomenon whichbecamemarkedin1979,
increased-evenevenfurtherin1980;this-byneutralizing mostofthe•
existingovercapacity -indirectlyhelpedthemarkettoavoidaslump
..chichwouldotherwisehavebeenconsiderable .;' '■
Factorsuchasthisrevealtheprecariousness ofthemarketsituation
which,togetherwitheconomicandpolitical--.contingencies ,'particularly
intheenergysector,,givesrise-toconsiderable uncertainty aboutfuture
trends.Theassessments andforwardtrendswhicharesetoutin;this
reportandwhichtendtoconfirmthatthecrisisintheindustryisnot
yc-toverandhasnotevenstartedtodieawayreflectthetrenddeduced
or-.tnebasisofthemarketmechanismswithouttakingintoconsideration th
possibilities ofexternaldisturbances . -
Thetrendintheindustryfor1981isnot,therefore/auspicious .The
levelofproductionhasdroppedaslowasthatofneworders,andso
f.ofurthersignificant reductions canbeexpected.Effortstoincrease
comp&titivenessshouldnotberelaxed,thisbeingtheonlymeansof
guaranteeing theshipbuiIdingindustryinthefutureaplaceonthe
smallmarket..
*...0JC229of27September1978.- -''
**Supplement .7/79totheBulletinoftheEuropeanCommunities;
doc.COM(80)443final. •-

-3-
*2.'Central_eç2Poniç_baçkçroynd
Thegeneral economic situation deteriorated in1980;attheendof
theyearthisdeterioration wasmoreacutethanexpected .Thegrowth
intheCommunity 'sgrossdomestic productisestimated tohavebeen -
nomorethan1.3%in1930compared with3.4%in1979.Bothpublicand
.private demanddropped . ,; .
Afiected bythestagnation ofgeneral economic activity,thevolumeof
worldtradeincreased byonly1.9%in1980compared with6.9%in,1979.
According tothelatestCommission forecasts ,whichhavehadtobe
revised downwards ,therateofgrowthexpected forGDPin1981is
-0.6%fortheCommunity .The'recession shouldbottomoutinthesecond
quarter andaslightimprovement isexpected inthesecondhalfofthe
year.TrendswithintheOECDasawholeareslightly better (antncrease
ofaround 1%),mainlybecause thesituation inJapanisexpected tobe.
distinctly morefavourable .
This ,stateofaffairswillaffectthedevelopment ofinternati onaltrade,
whichisexpected toincrease by0.5%in1981asawhole.Suchavery
lowgrowthratewillinevitably affecttheseatransport market,
sinceamajorpartofworldtradeiscarried bysea.
3.l£ends_i n_the_sea_t ransQort_seçtor ,
Theencouraging trendsintheseatransport markedin1979allweakened
i'n1980,although special circumstances prevented the -moremarkeddete­
rioration whichwouldnormally haveresulted fromtheimbalance between
supplyanddemandfortonnage .Therateofincrease ingrosstonnage
carried atseatailedoff,^falling from7.5%in1979to-3.5%in1980;
tnefLe^-tutilisation rateexpressed intonne-miles evendropped by ~
some5.5%in1980,compared witha4%inceasetheprevious year;the
l^velcfseatransport intonne-miles hasthusreacheditslowestpoint
sinee"975.
Cntheotherhand,theworldfleetagainenjoyed aslightincrease in'
';-580evenifdeliveries weretoalargeextentoffsetbyscrappings andlosses
*mchdndnotdiffer .sigmficantlyfrom1979.
Thesemaintrendscanbeseeninthefollowing table.

Table 1
WORLD SEABORNE TRADE AND CARGO-CARRYING FLEET
Oil and oil products Other cargoes
carried bysea fleet * carried bysee fleet
'000 million
tonne-mi les%million
dwt% '000 miIlion
tonne-mi lesV.million .
dwt%
1973
1975
1977
1978
1979
1980 ρ10.217
9.730
11.467
10.646
10.659
9.570100
95
112
105
107
94234,3
313.0
356.1
352,9
346.2
335,0
"100
134 ,
152
151 ,
148
14>35.187
5.636
6.050
6.388
7.016
7.140100
109
117
123
135
138205.6
230.7
268,5 .
279.8
291,8
.307,1100
112
131
136
142
149
asatendofyear' p=provisional Source :Fearnley &Egers ,Oslo
This table also shows that thetrend varied considerably according to
market sector .
Forexample ,intheoil-tanker sector ,demand expressed intonne-miles
dropped by10% asaresult ofseveral factors ,principally the7%
reduction intheamount ofoilconsumed bytheOECD countries ,thefact
that stocks hadbeen attheir highest level beforehand ,theincrease
inoilproduction inthose fields closest tothemajor centres of
consumption and the drop ofat .least 13V.inOPEC oil exports .This
affected thefreight rates ,especially for large oiltankers ,but
itseffects were mitigated.by the fact that theincreased tanker
tonnage available d.idnotfully affect theactual tansport market ,
because some ofthese vessels were withdrawn from the market and
used forstorage andbecause anadditional reduction inservice
speeds -inanattempt to'restrict theconsumption offuel ,the
price ofwhich increased considerably -reduced theefficiency of
using these vessels toaneven greater extent than in1979 .

-5-
Theassignment ofcombined carriers tothedrybulkmarketthushelpedto
restrict thedevelopment ofamarketsurpluscapacityinoiltonnage,though
thisisstilllatent.Specialists estimate thatthistransfer accounts for
7million dwt,thattheadditional tonnage usedforstoring crudeoilamounts
to10million dwtandthatthetonnage absorbed byanadditional reduction
inspeedamountsto8million dwt.Atotalof9.7million dwtwasscrapped
compared with8.6million theprevious year.
Allthesefactorsexplain why,paradoxical thoughitmayseem,thelaidup
tonnage droppedslightly in1980,asthefollowing tableshows:
Table2-TONNAGE LAIDUP
Numberof
vessels'000grt '000dwt
1978July 765 29.651 55.289
October 737 25.486 47.507
1979January 595 16.678 30.290
ApriI 526 15.048 22.395
July 417 11.206 20.063
October 353 7.490 12.518
1980January 298 6.204 10.603
ApriI 268 5.542 9.417
July 268 6.767 12.249
October 233 5.371 9.512
1981January 229 4.840 8.288
Source:Institut fürSeeverkehrswirtschaft ,Bremen
Inthearycargosector,trafficintonne-miles didnotdropasawhole>
remaining atapproximately thesamelevelasin1979.Infact,thetrend
variedconsiderably withthecommodities .Forexample,seaborne transport
ofcokeandironorefelloffinlinewiththefluctuations inactivity
inthesteelindustry,whilethetransportation ofcereals andcoalincreased
andthedistances travelled werealsolonger.
Despitethegeneralvirtualstagnation inthecarriage ofdrybulkcargo,
theincrease intransport capacity resulting fromtheincrease inthebulk
carrierfleet,duenotonlytodeliveries butalsototheabove-mentioned
transfer ofcombined vessels,didhavetheadverseeffects onfreightrates
whichmighthavebeenexpected;instead,freightratesremainedfairlystable.
Thesignificant reduction intheefficiency oftheirusefollowing theblockage
ofalargeamountoftonnageowingtoportcongestion isthemai.-.factor

-6-
behindthisphenomenon.Thus,inthecourseoftheyear,therewere_
bottlenecks inportsofunloadingforironore,ofloadingforcereals,
ofunloadingforcoaland,finally,ofloadingforcoal;thedelayin
loadingcoalreached100daysintheAmericanportsattheendofthe'
year.Thesedelaystriplethecapacityrequirement forthissectorand,,
intheopinionofsomeexperts,artificiallymobilizetransportcapacity
ofsome-15-20milliondwt. -•
'' . - \
Alarge,proportion ofthiscapacitymayberegardedasreservetonnage,
withtheresultthat,at,sometime,inthefuture,:itmightrapidlylead
tomarkedovercapacity on-,the,marketwhenportoperationsreturntonormal,
sinceshort-term seatransporttrends-whicharetendingtowardsstagnation,
inkeepingwiththetrendingeneraleconomicactivity-donotseemto
suggestthatitwillbeused,barringunforseeabbedevelopments .An
additionalriskofovercapacity resultsfromtheuncertainty surrounding
themaintenance offirmtrends -ingraintransport.'
Inmany-cases,difficulties havecontinuedin'thelinertradeasfreght '
ratescouldbeincreasedonlyslightlybecauseofthekeencompetition ,■
inthesemarkets,withthe'resultthattheincreaseinoperationcosts,'
particularly withregardtobunkers,couldnotbecovered.Someoperators
haveinfactbeenforced .toreorganizeinordertocopewiththissituation;s.ome
havetrimmedtheiroperationsconsiderably,orgoneoutofbusiness
altogether,whileothershavebeentakenoverbylargegroups.
ThedecreaseinthesizeofthefleetflyingtoflagsoftheMe.'nber
Statesof.theCommunityofNine-3.9milliongrtirv1979-sloweddownin
1980to1.5milliongrt,i.e.-2%.Tobesure,theoverallfiguresfor
thistrendwillbealteredbytheaccessionofGreece,sincetheincrease
intheGreekfleettendstooffsetnearlyallofthisloss,butthisdoes
noteliminatespecificproblemsatnationallevelinsomeMemberStates.
Thefollowing.tableillustratesthisstateofaffairs.

-7-
TABLE 3-WORLD ANDCOMMUNITY FLEETS
Allmeι– World Community %OT Greece %of
chant4ships'000§rtofNine world I'000grt world
'000grtfigures figures
1.7.1960 129769,5 43I
620,5 i33,6 4529 3,5
1.7.1970 227490,0 57369,4 ¡25,2 10952 4,8
1.7.1975 342162,4 74283,3 !21,7 22527 · 6,6
1.7.1977 393,678,4 76392,6 I19,4 29817.7,6
1.7.1978 406002,0 76930,1 18,9 -33956 8,4
1.7.1979 413021,4 73071,8 I17,7 37352 9,0
1.7.1980 .419910,7 71644,1j17,1 39472 9,4
Commercial tradingi
I*
typesonlyI
!
1.7.1978 379549,9 72411,4 .19,1 33289 8,8
1.7.1979 385485,7 68495,3 I17,7 36631 9,5
.1.7.1930 390971,8 66922,0ι17,1 38687 10,0
Source :LtoydsRS
4.Situation oftheshipbuilding industry
4.1.General trends
Theoverallsituation ofworldshipbuilding didnotimprove;the
volumeofnewordersstagnated atthelowlevelof1979,andpro­
duction dropped byafurther 10%,reducingittolessthanthe
annualrateofordersandthusaggravating thesituation inthis
respect .Thesepointers showthat,'ingeneral,thecrisisis
stillwithusandthatthegener'al recovery hasnotyetbegun,
despite whatsomeassessments wouldtendtosuggest .
Tobesure,thesituation oftheJapanese shipyards inparticular
hastendedtoimprove,whichmeans,inviewofthestagnant market,
thatthesituation inothercountries ,particularly inEurope,
Tounderstand andinterpret_the unitsandsourcesofinformation usedin
this'sectionofthereport,thereadershouldconsulttheAppendix tothis
report.Itshouldbeborne'in mindinparticular thattheobservations
madearebasedoncgrtfiguressupplied byLloyd'sRegister ofShipping (LRS).

-8-\
hassuffered morefromthesqueezeevident fromthe-worldaverage .
Thiscanbeseenfromthesharing outof•themarketbetween the
various regions whichhasdeveloped tothedetriment ofthe-
European shipbuilding countries .Japan'sshareofneworders
worldwide ,expressed incgrt,thusincreased from41.6%to
46.7%between 1979and1980. - .. .
Ofthefactors behindthistrend,thelowexchange rateofthe
yendefinitely played amajorrolefor.mostof_theyear,helped
bythefactthatJapanhadreleased thebrakewhichithadapplied
tocontainitsshipbuilding within -limitscompatible withtheslump
inthemarket;itwasmainly aquestion ofincreasing thecapa­
cityutilization ratesandboosting thefundsforfinancing orders
onboththeinternal andforeign market.E\Aenthoughtheadvantage
derived fromtheexchange rateoftheyenhaddisappered bytheend
oftheyear,these,factorsstillprompted averylivelyflowof-
orders,leadingto"aconsiderable concentration oforders
-particularly foroiltankers andbulkcarriers -inJapanese
shiyards,butalsoremoving fromthefuturelevelofdemand some
oftheorderswhichwerethustriggered prematurely .
Therestructuringoperations ,involving theshedding ofcapacity,
havebeencompleted .inJapan;inEurope,theyweregenerally
continued (wherever theyhadnotbeencompleted),butthe*
circumstances described abovearearenotconducive tocarrying
themoutsmoothly .
Contract pricesroseingeneralin1980byanestimated :25%to
30%,partic-ularlyinthecaseofoiltankers,asaresultof
-amongotherthings-thecombined impactoftheriseinprices
inyenandtherise,inthevalueoftheyen.Despitethisprice
rise,pricesdidnotreachahighenoughleveltoberemunerative
forEuropean shipyards ..

4.2.Situation intheCommunity
4«2«1«Proauction _ ■.
In19S0,-Corcrounityproduction amounted to2.4millioncgrt,
adropof18.U'/.compared with1979and52%compared
with1976.
TABLE4-PRODUCTION (completions ) '000cgrt
(seefootnote 1
onp.7for
details on
coefficients)1976 1978 1979 1980
LRS
(AWES
coeff.76 )OECD
(1967
coeff.)LRS
(new
coeff.)0ECD
(new
coeff.)LRS
(new
coeff.)0ECD
(new
coeff.)LRS
(new
coeff.)0ECD
(new
coeff.)
Belgium 139.8
Denmark 560,6
France .·672,4
Germany |1A68,0
Ireland !20,3
Italy* .355,9
•Netherlands ■!940,0
UnitedKingdom ;985,1141.0
425,0
1117,0
1630,0
14,0
314,0
507,0
824,0.165,2
362.5
430.6
1029,1 .
5,0
305,2
513,9
718,4154.8
378,7
440,2
1059,6
283,1
455,0
708.9124,8
351,4
492.0
660,7
18,9 .
248,6
505.1
579,0133,9
303,9
473,7
617,4
17,0
232,1
405,9
583,9
.129,6
382.4
267,8
596,2
3,0
345.5
249.5
458.6131
263 -
302
618
320
240
514
Com.c.L-nuy ¡.5140,1 |4972,0 .j3529,93480,3 2980,3¡2767,8¡2432,7
1 -12393
*The0L:cr>datator1976,1973and1979relateonlytothemainyards.
Tho".9o0figureincludes 253000cartfortheseyards.

-10
Production did not faLl bythe same amount inallMember
States ;thedecrease largely reflected the structural
changes made . -
4.2.2 .Neworders - ' ,• '
In1980 ,production closely matched thelevel of-neworders ,
. .indicating that asregards the latter balance has been established
atleast forthe time being ,although atavery low level
"remaining even considerably below thereduced capacity level .
However ,inItaly and theUnited Kingdom ,the'annual rate
ofneworders deviated somewhat from that-of production ;if
maintained ,this phenomenon could lead toareadjustment of
production .Inseveral other Member States ,e.g. Germany ,
-•France and theNetherlands ,neworders were sufficient to
guarantee thecurrent rate ofproduction overall .
TABLE 5 - NEW ORDERS ''000 cgrt
. '
' 1976 ·*
1978' 1979 1980
-
VLRS 0ECÖ .
(AWES 1967
coeff . :coeff .)
1976 )LRS 0ECD
(new (new
coeff .)coeff .)'LRS OECD :
(new (new
coeff .)coeff .)LRS 0ECD ..
(new (new
Coeff .)Coeff .) .
Belgium
DenmarK
France
Germany
Ireland
Italy («)
Netherlands
United Kingdom75,0 '54,0
317,1 220,0
63,6 37,0
726,1 511,0
-19,2 ..
301.5 281,0
626,4 259,0
627.6 421,059,4 -40,9
263,8 306,6
214.1 '175,6
535,8 448,6
•3,0–
330,0 265,6
376,5 311,9
230.2 338,5270,0 203,7
391,0 418,9
487,3 350,8
805>9 1007,0
,15,0 17,0
156,6 56,0
240,2 279,8
188,9 305,453,8 Ί38 .
284,6 349
'556,4 353
613,0 619
1,3 -
231.2 235 "
373.3 323
350,2 384
Coir.murtity 2756,6 .1783,0 2012,6 1887,7 ,2554,8 2638,6 2463,8 2451
(*)The.OFCD data for1976 ,1978 and1979 relate only tothemain yards .Thefigure for1980
ir,cluu'es 214000 cgrt forthese yards . .
One cause forconcern regarding theCommunity shipyards was that .
they were unable tomaintain their market share ,whatever world
market indicator istaken into account .Between 1979 and 1980,'
theCommunity 'sshare ofneworders dropped from 18% to17% and
itsshare ofproduction andorder books fell from 21% to19% .

t -11-
TABLE6-TRENDINTHEMARKET SHARES OFTHE
<MAJORSHIPBUILDING REGIONS
1976
'000 I%
cgrt '1978 )
•000 %
cgrt J1979 I
1000 17.
cgrt -1980 ι
'000 I%
cgrt.ι
co.'-'PLCT;tf«s
te-9
ReL.tofAWES**,
(Western ¡Europe )
J,;lun- j*-
Rest.oftheworld
ofwhichEastern
blocI
5140,1'23,3
3145,7 114,2
(8235,8)i(37,5)8348,0 !37,8
5444,4 '24,7
2755,4 ¡12,5I
3529,9 121,3
2303.1 j13,9
(5832,9):(35,2 )
6120,5 I37,0
4593.2 127,8
2132.3 I12,9
I;'I.
.2980,3 I21,2
2127,5j15,1
(5107,9)(36,3)
4975,2 I35,3
3994,7 ι28,4
1392,5j9,9N.I
2432,7'19,2
1499,0 i11,9
(3931,8)ι(3Τ,1 )
5207.2 '41,2,
3496.3ί27,7
1213,5j9,6!
TOTAL 22078,2 ¡100,016546,7¡100,0 14077,4 h00,012635,2jl00,0'
f.VW0OCR.INTAKE '.]''
EC-9 I2756,6'17,2
Res:ofAV.'£S"*I1903,0 i11,9
(Wester .-.Europe)i(4659,6)(29,1)
Jopar. I7337,5 145,9
Restof"tr,e-aridj3985,3 !24,9ofwhichEastern {1896,9 ·11,9
bloc i1;.
2012,6 !18,6
1367.8 I12,7
(3380,6)^(31 ,3)
4333.9 140,1
,3031,8 !28,6
1146,8j10,6I
ι.
2554.8 I18,0
2179.9 ,15,3
(4734,6)'(33,3 )
5904.6141,6
3568.7j25,1
950,0j6,7.1
2463,8 117,2
2049,5 j14,3
(4513,3)(31,5)
6708,3 146,7
3136,1 i21,8
467,9j3,3'
TOTAL i15982,4ιΙΟΟ,Ό10796,3¡100,0
νi14208,0 |l00,0j
14357,5 j100,0>
Source :Lloyd'sRegister ofShipping
■A'a'I-S:Association ofWestEuropean Shipbuilders .Members fromoutside the
European Community aretheshipbuilders' associations offinland, '
Sweden,Norway,SpainandPortugal .
Although t.heCommunity 'sshipyards suffered adrop/inneworders
''in1980,thevolumeofordersplacedbyCommunity shipowners increased
incomparison with1979.Theadditional ordersallwenttoshipyards
innon-Community countries .In1980,theseshipyards received 30%of
thetotalvolumeofordersplacedbyCommunity shipowners ,compared with
anaverageof20Zintheprevious twoyears.Thesefigures wou'd
beevenhigherwereitpossible totakeaccountofalltheirorders
foropenregistry vessels,buttherearenostatistics onthis
subject..
Thetablebelowillustrates thisdevelopment .

-12-
TABLE7-, BREAKDOWN OFORDERS BYFLAG
1QOOcgrt .1976 1978 1979 1980
• I
'1wIw
–' 10 .<u
03 1UJ-r-1■>-
C-ΜιC.0c_
OCiiL.4-1IUJ+-»-atfOC 11C
4-»L. 1JZ3C3
<0ro,4-*OΟΟζ:6IΟυ|zυI
-Ί;2
w 1^
V0L.
OUJ+-»
Η,1cc30·»00
ωΖt>
Il" J■
■I1(ΛJCO.04»\a
<Ό ItU»r-.·*–
C«M 1<-I0Ι-
Ο<L·Ii--M UJ+-»
·- Iα>c\icXJc\c3'c3
fl)fl)ρ0iOOζε¡ouιζo.1ι
,1I(ΛIOQi1φ
<U 1UJ-r-» «r–
C«M.C.10Ι-οILν.ujρ
Iοιc 1c
**>L.,JZ3'c3
<0<01*->O100se00120.
Orders
placedby
Cqmmunity
shipowners64%'5%Λΐ%
IiI.
83%I17%
I73%'5%I22%
! Iι 1
63% 17% 130%
1 1
TOTAL:
3027cgrtTOTAL:
Í99Acgrt•TOTAL:'
2028cgrtTOTAL:
2381cgrt
Orders
received by
Community
ShipyardsI
70%ι5%|25%
ï ;»
74%I26%
\1 «
55%14% 141%
ΙιI I
61%I7%I32%
I 1
TOTAL:
2756cgrtTOTAL:
2012cgrtTOTAL:
2555cgrtTOTAL:
2476cgrt
Source:LRS4
TheCommunity 'sshipyards alsosuffered adropinexportorders,with
theresultthat,despitetheabovementioned tendency forCommunity
shipowners toorderahigherproportion ofvessels fromoutsidethe
Community,theseownersstillaccounted for68%oftheordersreceived
bytheCommunity shipyards,whichistheaverageforthelastfewyears.
Thistrendwasaccompanied bychangesinthetypesofvesselordered;
this,together withtheincreased competition fromJapanese shipyards ,
isoneofthereasonsforthereasonsforthelackofsuccess ofthe
European shipyards .
Table8showsthetrendofworldordersbymajorshiptypes.
Asthesefiguresindicate,demandremained atthe1979levelmainlybecause
oftheriseinthenumberofordersforbulkcarriers .Therenewedinterest
shownforthesevesselsreflects thesituation oftheseatransport
market,whichwasdescrib.ed-above,'andwhichalsorevealstheprecariousness
ofthisdevelopment .Thespeculative anticipatory actionintheface'
oftheriseinpricesandintheyenexchange rateprobably helpedto
accelerate ordersforthesevessels.
Thedeclineinordersforoiltankers andcargoshipsreflects the
trendsontheseatransport marketsservedbythesetypesofvessel.
However,inthelattercategory,therehasbeenanincreaseinorders
forvesselstocarryliquefied gasandchemicals .

-13-
TABLE8 TREND OFNEWORDERS BYSHIPTYPE
1000cgrt Oiltankers Bulkcarriers Cargoships Non-cargo TOTAL
- vessels
1977world'(·/)
790,6ι1.783,2 !a)8.497,3 ^<%)2.969,8¡1(?)14.040,9 ,
EC •30,9¡(3,9)75,1|(4?2)1.764,4 1(20,8)670,5(22,6 )2.540,9(18,1)
I
1978world1.185,41 534,8i 6.163,δΐJ
2.912,7 ,10.796,7 I
EC 56,2'(4,7)
1 23,6j(4,4)1.341,3|(21,8)591,5|(20,3)2.012,6j(18,6)
1979world3.364,81 -2.744,9 I 5.143,4j2.949,8' 14.207,91
'EC 168,1¡(5,0)466,5j<17)1.172,6 (22,8)747,6|(25,3 >2.554,8 |(18,0)
1980world 2.960,2i 4.325,3 1 4.780,1 )2.291,9' 14.357,5 !
EC273,7j(9,2)425,9|(9,8)1.023,4j(21,4)740,8(32,3 )
!2.463,8 1(17,2)
Source:LR5
Demandfornon-cargo vessels shrunkby22%,andyetCommunity
shipyards hadthesameLevelofordersforthistypeofvessel
asin1979.Asaresult,theirshareoftheworldmarketincreased .
ThesharewonbyCommunity shipyards wasslightly lessthanthe
worldaverageforordersofoiltankers andbulkcarriers,while
theirshareofordersforcargoshipswasslightly abovetheworld
average .
DespitethefactthatCommunity shipyards managedtomaintain their
position onthemarketforgeneral andspecialized cargoships,the
generaldecline onthismarketisaparticular sourceofconcern
fortheCommunity shipbuilding industry sincethistypeofvessel
isoneofitsmainlinesofproduction .

A.2.3.Order books
Theorder book situation remained stable intheCommunity ,compared
with anincrease of8.6 %worldwide ,duemainly tothe 25%increase
inJapan .
Table 9-ORDER BOOKS · '
1000 cgrt At31December 78 At31December 79 At31december 80
LRS OECD LRS 0ECÛ LRS 0ECD
EC
Rest ofAWES
Western Europe
Japan
Eastern Bloc
Other regions•5087,2 4870
3957,2 3834
(9044,4 )(8704 )
5464.6 4938
2121.7
6787,94882,8 4717
3919,7 3932
(8802 ,6> (8649 )
5841,6 5004
2297,3
6627,04911,9 4799,6
4398,1 3975,1
(9310,0 ) (8774,7 )
7297.8 6541,0 .
1964.9
7019,5 .
TOTAL 23418,6 23568,5 25592,2
Λ *
Thestabilization oftheorder book figures intheCommunity is
due tothe reduction inproduction .Compared with the annual rate
ofproduction ,theCommunity 'sorder book ,like that ofthe
European countries ingeneral ,appears tobesomewhat larger than
inJapan .This state ofaffairs ,which isaconstant feature where
order books areconcerned ,is,however ,only superficial .It
results ,infact ,from the types ofvessel onthese order books : •
asthose built most frequently inEurope aremore elaborate ,
construction takes longer .This means that these vessels are
shown ontheorder books for alonger time than are less sophisti­
cated vessels and that alarge proportion ofthe work which
appears tobeinhand hasalready been carried out ;furthermore ,
theorder booking procedure isfaster inEurope ,where ittakes
place assoon asthe contracts areconcluded ,than inJapan where
itdocs nottake place until official authorization hasbeen given .
Furthermore orders areoften carried out inJapan inthe same year
inwhich they areconcluded sinoo the types ofvessel built and
thecapacity avai labi Iities 'lend themselves tothis better than
inEurope ;this rarely happens inEurope and itmeans that the
deliveries planned forthe short term -asshown bytheorder
book entries -arenomore than apartial indication ofactivity
inJapan ,whereas inEurope they cover allactivity ,oreven
more than this .

-15-
Table10-ORDERBOOKSINTHEEUROPEAN COMMUNITY
1000cgrt LR'S OECD
Completions
1980Totalorder
booksat
31/12/1930For
1981delive
1982ryin
1983Completions
1980Totalorder
booksat
31/12/1980Forde
198.1Livery
1982in
1983
Germany
Belgium
Denmark
France
Irel'and
Italy
Nethei–
lands
United
Kingdom596,2
129,6
382,A
267,8
3,0
345,5'
249.5
458.6950,9
331.7
669,3
1193,7
17,8;
639.8
493,7
615,0749.6
225,8
369.8
662,4
17,8
469.7
336.9
401,0182.7
105,9
239.8
300,4
150,3
142,3
188,018.6
59.7
230,9
19.8
14,5
26,0618
131
268
302
320
.240
5141173,7
338.3
735,2
923,0
17,0
550,2
420,8
641.496S,7
165.2
362.6
575,0
17,0
301.7
285.3
365,2204,5
159.7
297,0
174.5
211,3
115.6
247.80,5
13,4
75,6
173,5
37,2
19,9
28,4
Community 2432,6 4911,93
I233,σ1309,4369,52393 4799,63040,71410,4348,5
TheUnitedKingdomhastheslimmestorderbookand,dependingonthe
programmeofdeliveries,couldstillsufferaslightdropinproduction
in1981.Intheothercountries,thedeliveriesscheduleissuchasto
ensurethatthecurrentlevelofproductionismaintained.However,it
isunlikelythatCommunityproductionwillriseto3millioncgrtin
1981asthisschedulesuggests.Experiencehasshownthatthereis
normallyatimelagbetweentheforecastsofdeliveriesbasedonorder
booksandthedeliveriesactuallymade,partlybecauseoftheslowness
ofsomeshipownerstotakepossessionofthevesselstheyhaveordered,
themodifications theymakeduringconstruction,andthetendencyfor
shipyardsreceivingfeworderstospreadouttheworktheydohavein
ordertoavoidexcessivefluctuations orgapsintheirworkload.
4.2.4.Employment
In1980,thenumbersemployedinshipyardsonthebuildingofnon-
militaryvesselsfellbyabout8%,i.e.10000persons,compared
withthepreviousyear.Thisreductionislessthanthatin1979-and
lowerthanthedropinproduction.Theworkforcehasfallenmostin
theUnitedKingdom,whereasithastendedtostabilizeinIreland
andBelgiumandthebeginningofanincreasewasobservedinDenmark.

16-
Table11-EMPLOYMENT INSHIPBUILDING INTHECOMMUNITY
theyear) (NEWBUILDING ) (attheendof
19?5 1978 1979' 1980
Belgium 6138 5140 5100 5162
Denmark 16630 12000 9900 11400
France*) 32500 25300 23000 22200
Germany 46800 32400 27369 24784 ι
Ireland 869 840 · 750 750
Italy 25000 20000 19000 18000
Netherlands 22662 17540 •14540 13100
UnitedKingdom 54550 .41050 31200 24800
Total 205154 154270 130859 120196
(Tablecompiled fromnational sources)
*)revised series
Although employment hasfallenconsiderably since1976-byaround40X-
production hasdropped evenmore-bymorethan50%.Thisdifference is
duemainlytothefactthatthe-change inemployment primarily tookthe
formoftheabolition ofovertime,uhichwasstillatahighlevelat
thestartofthecrisis,andtheneedfortheshipyards tokeepona
minimum numberofworkers,irrespective ofhowmuchworktherewasforthem
inordertoremainoperational .Inthisconnection itshould benoted
thatrecourse toshort-time workingdeclined in1980,thoughmorerapidl.y
insomecountries thartinothers.
Thistendstoindicate thatstaffreorganization isgenerally near
completion andthat,exceptinunforeseen circumstances orspecial cases,
therateofreduction shouldtailoffinfuture.Ofcourse,theremay
stillbeconsiderable differences fromonefirmorregiontoanother.
Information isnotsufficiently complete toallowustoconclude how
jobswereshedin1980.Itwouldappearthatsomeofthesejobswere
eliminated bytransferring workerstorelatedactivities suchasoffshore
operations ,military shipbuilding andshiprepairing.Manpower notneeded
forbuilding newnon-military vessels canbeabsorbed onlyveryslowly
bythedevelopment ofactivities notconnected withshipbuilding asthis
isalong-term process.
However,someshipyards are.stillfindingitdifficult torecruit
skilled workers.Thisisduetoawiderangeoffactorsincluding mobility
andtheproblemofjobstability .Toresolvethisdifficulty ,theindustry
mustreorganize production methods andworkingconditions ,andturnits
attention tomatters suchastheretraining andfurthertraining of
workers . '

-17-
AtCommunity Level,in1980aidwasgranted fromtherelevant aid
schemesoftheEuropean SocialFundinthreeMemberStates-Italy,
theUnitedKingdom andGermanywiththeaimofpromoting theoccupa­
tionalandgeographical mobility ofthelabour "force;some7000
persons werecovered bytheseoperations .
InAugust1980,theCommission submitted totheCouncil aproposal v
foraRegulation ontheestablishment ofanewaidschemeunderthe
European SocialFund5ESF)toprovide incomesupportforworkers
agedover55wholeavetheshipbuilding industry anddropoutof
thelabourmarket.Theproposal relatedtoanexperimental two-year
schemewithabudgetlimitof11million ECU;between 2000and3000
persons wereinvolved;thisESF-aid wouldbelimitedto4500ECU
perperson.TheEconomic andSocialCommittee andtheEuropean Parliament
haveexpressed favourable opinions,buttheCouncil hasnotreacted
favourably andhasleftittotheCommission whetheritshouldamend
thedraft.\ '
InOctober 1980,theCouncil approved theCommission proposal to
allocate,underthenon-quota operations oftheEuropean Regional
Development Fund(i.e.operations notnecessarily connected with
thetraditional areasofintervention ),financial aidof17million
ECUoverfiveyearstotheUnitedKingdom regionsparticularly
affected bydifficulties intheshipbuilding industry .
Thisaidwillbegrantedintheformofaspecialmultiannual ,programme
directed towards theimprovement ofthephysical andsocialenvironment
inordertoattractactivities whichprovide employment ,towards the
development ofsmallandmedium-sized enterprises andtowards the
encouragement ofinnovation . s ■ ■
Marketprospects . - .
Theworldtradeforecasts areanything butpromising formostof1981;
thiswillunavoidably affecttheseatransport market.But,inview .
ofthecontinuing large-scale under-uti lization offleetsonthis
market,mostexperts agreethatitisextremely difficult tomake
anyquantitative forecast forthis'sector.Wemusttherefore restrict
ourselves tomaking anumberofqualitative indications whichwill
probably playaroleinfuturetrendsonthismarket.
Asregardsoiltankers,thetransportation ofoilisnotexpexted
toincrease-ortodosoonlyslightly-in1981.Thetonnagecapacity
onofferwillthuscontinue toexceedthedemand,butsurpluscapacity
willbepartlyabsorbed bysub-optimal utilization ofthefleetsor
byusingthemforoilstorage.Thescrapping ofthistypeofvessel
couldalsobeaccelerated somewhat,particularly astherewouldno
longerbeanyeconomicjustification foradapting someofthemtothe.
requirements oftheIMC0*)rules.
*)IMC0=Intergovernmental Maritarne Consultative Organization.

••18"
However,itstillappearsprobable thatagenuine balance between
supplyanddemandintheoiltankerse-ctorwillemergearoundthe
mid-eighties ,andthisislikelytohaveunavoidable adverse
effects onthelevelofnewordersuntilthen.
Bulkcarriers facean:uncertain situation in1981.Inviewofthe
weakness oftheeconomic situation inmostof1981,thefuture
largely depends ontheextenttowhichthetrendsforthecereals
an'dcoaltradedevelop,particularly asregardsthesub-optimal use
offleetcapacity.Ifthislatter/actorweredampeddownin
consequence ofnormalization ofportconditions ,therewouldbe
amarkedshort-term imbalance onthissection ofthemarket -and
demandwouldbeconsiderably curbed.Theimbalance couldbeworsened
following thelarge-scale deliveries o-fbulkcarriers expected in
theshorttermasorders madein1980arecompleted .Itistherefore
difficult toforecast whether therewillbeaconsolidation ofthe
balance between supplyanddemandwhichbegantore-establish itself
in1980orwhether therewillbeareturntoasituation of
over-capacity .
In1980,theAssociation ofWestEuropean Shipbuilders (AWES)drew
upnewforecasts relating moredirectly with-shipbuiIdingactivities
Theyaresummedupinthefollowing table:

-19-
TABLE12-FORECASTS OFWORLDSHIPPING REQUIREMENTS
(AWESstudy1980)
10cgrtNEWTONNAGE REQUIREMENTS
fordelivery duringCONTRACTING REQUIREMENTS
fordelivery during
'1980-
mid1985mid1985-
mid19901980-
mid19901980-
mid1985mid1985-
mid19901980-
mid1990
Oiltankers 12,0 8,4 20,4 6,6 8,4 15
Bulkcarriers +
combined carriers11,3 18,0 29,3 6,5 18,0 24,5
Cargoships 36,2 49,3 85,5 28,0 49,3 77,3
Gasandchemicals-
carriers
Non-cargo vessels6,1
16,69,6
24,315,7
40,94,3
11,19,6
24,313,9
35,4
TOTAL 82,2 109,6 191,8 56,5 109,6 166,1
Annualaverage 14,95 21,92 14,1 21,92
AnnualaverageinAWES
study1978(1978-1985 ) 13,2
N3:Newtonnagerequirements
Contracting requirementshavealready beenpartlycovered byorders made
represent ordersstilltobemade.
4
Theseindications ,although derived frommoreoptimistic GDP
growthscenarios thanthoseusedbytheOECDortheCommission ,
showthatnodefinite improvement inshipbuilding activity can
beexpected inthenexttwotothreeyears.Thatisoneofthe
reasons whyitisregrettable thatactivity intheJapanese
shipyards hasstartedtopickup,sinceintheabsenceofany
curbs,thismaywelldisturb theequilibrium betweensupply
anddemandandthegeographical distribution .

-20-
4.4Structuraldevelopments >intheshipbuilding industriesofthe
MemberStates
Germany
Thereorganization towhichtheindustryhascommitteditselfaspart
oftheStateaidprogrammecontinuedin1980.Atotalof2500
jobsinthenon-military newbuildingsectorweretransferred to
other'activitieswithintheshipyards,andasaresulttotal
employmentremainedstableatalevelof52500.Thismeansthat
theshipyardswereabletointensifytheirpolicyofdiversification
atthesametime.
BeIgium
Therewerenomajorstructuralchangesinnewshipbuilding activities
inBelgiumin1980.However,therewererestructuring measuresin
theshiprepairingsectorinvolvingthemergerofthe"twolargest
firmsintheAntwerpregion;thesemeasureswerebackedbyState
financialaid,inparticularinthesocialsector.
AsfromAugust1980,workinghoursintheshipbuilding industry
werereducedfrom40to38hoursaweek.
Danmark
Nomajorstructural -changesoccuredinDenmarkin1980.Aspart
ofthediversification scheme,someshipyardsbeganoperations
intheoffshorestructuressector,oratleastinsupplying
modulesforsuchstructures .
France
Asforrestructuring operationsinFrance,themajorshipyards
havetriedtoadapttheirinternalorganization tothereduction
inthelabourforcewhichhadtakenplaceinprevious ,years;the
switchtomoresophisticated productsandgreaterdiversification
ofproductioncontinuedandisreflectedintheordersobtained.
Ireland
DespitetheeffortsinIrelandtodiversifyintoshiprepairing
andmachinery-building becauseoftheshortageofworkinnew
building,itwasimpossibletoprovidefull-time'employmentfora
labourforcewhichhadalreadybeenreducedtoaminimumsurvival
levelofsome750workers.

-21-
.Italy
Orderlyclosureofshipyards wasavoidedinItalyasarestructuring
planwaslacking,buttheworkload ofseveralshipyards didnot
allowthatthemanpower available couldworkfull-time .
Inthesecircumstances ,theindustry isendeavouring tomakea
startoninternal reorganization soastobeinabetterposition
tocopewiththedifficult marketsituation andisendeavouring to
diversify intorelatedactivities .Sincethecrisisbegan,the
building ofmilitary vesselsforforeigncountries and,toa•
lesserextent,shiprepairinghaveabsorbed agrowingproportion
ofthesurplus manpower .Asaresultofdifficulties hindering
progress inthisdirection someproduction facilities havebeen
mothballed .
Netherj^ands
Therestructuring planimplemented intheNetherlands between 1977
and1979wascompleted in1980withtheclosureofthelastshipyard
capableofbuilding verylargevessels,thisbeingasectorno
longerconsidered tobeeconomic intheNetherlands .TheGovernment
hadtotakeactiontomitigate thefinancial consequences ofthis
operation andalsointroduced anewsystemofgeneral -aidsforall
theremaining shipyards involved inthebuilding ofmerchant vessels.
Therestructuring ofthegroupofsmallshipyards inthenorthof
thecountry wasnotsoradical asthatofothergroupsandwas
restricted tocertain formsofvoluntary cooperation whichnever­
theless enabled themtomaintain theirmarketposition inafairly
satisfactory mannerduringthecrisis.
Restructuring hasresulted ina50%reduction inproduction capacity .
lln_i_t£d_Ki _ngdom
Therestructuring ofBritishShipbuilders wasactively continued in
1980andmainlyinvolved theemployment andtheorganization ofthegroup
Ifaffected .bothnewbuilding andtheshiprepairingandmechanical
engineering sectors,oneobjective alsobeingtoincrease activities
intheoffshore sector.
Summary
Adjustments arebeingmade,inlinewiththechanged marketconditions ,
throughout theCommunity industry .Overtheyears,manyshipyards
and-slipways havebeencloseddownormothballed orhavediversified
intootheFactivities .Generally speaking,itisdifficult togauge
theimpactofthesemeasures ontheproduction capacity,buta
tentative estimate leadsonetoexpectthatthecapacity inuse
in1976hasbeenreduced byover20%andthattheremaining capacity
isbeingusedtotheextentofabout60to70%.Inaddition,
efforts arebeingmadetomodernize production equipment andmethods.
e^Theadjustment processisproceeding withdiffering degreesof
intensity depending ontheMemberStateorshipyard concerned .

Conclusions
Since,asdescribedabove,thegeneraleconomicsituation-is in.
thesnorttermdepressed,theverymoderateincreaseininternational
tradecannotbeexpectedto-.createconditionsfavourabletothe
orderingofships.TheCommissionisthereforeoftheopinionthat
theshipbuilding marketwillnotpickupin1981Sinceanyexceptions
incertainsectorsofthemarketwillhotbesufficienttoovercome
thecurrentstagnation.
Inthesecircumstances,theCommunitycannottolerate,anymorethan
itdidin1980,thecontinuingsupport-launchedin1980-forthe
recoveryofshipbuilding activitiesinJapan,ifitwishestoavoid-
seeingtheEuropeanand,inparticular,Communityshipyardssuffer
afurtherdeclineinordersreceivedandintheirmarketposition.
Insubscribing totheOECD's.general •guidelines,Japanhascommitted
itselfto.bearitsshareoftheeffectsofthecrisis,toensure
thattheyaredistributedfairly^mongtheparticipating countries.
Itmustbegranted'that Japandidtakestepsinthisdirection,
but.-since.1980-ithasrelaxedjtheseeffortseventhoughthe
overallsituationisstilldifficult.TheCommission,6nbehalfof
theCommunity,hasthereforerepeatedlyrequestedjapan,inparticular
inOECDWorkingPartyN.6onShipbuilding,toreverttofulfilling
itsearliercommitments ..Althoughithasexpressedgoodintentions,
Japanhasstillnotseenfittotakepracticalmeasurestoensurethat
Japaneseshpyardsdonotcorneragrowingshareofthemarketinaway
which,inviewofthestagnation
ofthismarket,wouldcontinuetoharmtheCommunity
.shipyards.Aslongasthesituationcausesconcerninthisconnection,
theCommission,confidentthatinternational cooperation canplay
arole.inresolvingt(\edifficulties arisinginthissector,intends
tostepupits.efforts topersuadeJapantoacceptthefactsand
taketheactionrequiredinordertohelprestorethebalanceinthe
geographical distribution ofordersbetweenJapanandWesternEurope
aswasthecasein1978and1979.
WheretheinternalaspectareconcernedtheCommissionisendeavouring
tounderpinthisreorganization byvariousmeasures.
Thus,itcanbeexpectedthattheFifthDirectiveonaidstoshipbuilding
thedraftingofwhichstartedi.n1980,willcomeintoforceduringthe
firstsixmonthsof1981.*) ■■'^
Inthemeanwhile,theCouncilhasapprovedthisdirectiveonthe
28April1981CO.J.L137of21May1981).

-23-
Thediscipline introduced bytheprevious Directive willthenbe
extended toinclude aidstoshipowners inconnection withthe
acquisition ofvessels,inordertoprevent suchaidesfrom
jeopardizing theadaptation oftheshipbuilding industry;,the
Directive alsoemphasizes theimportance ofimproving competi­
tiveness amongthecriteria fortherestructuring effort,asthis
constitutes themaincondition forconsidering thecrisisaidto.
becompatible withthecommonmarket.
Noprogress resulted fromthestudyofthepossibilities of
presenting practical proposals forascrapandbuildschemeat
Community level.Theadditional aidwhichsuchaschemewould
involveraisesbudgetproblems ;moreover theprinciple ofsuch
aschemehasbeendisputed .
Inviewofthedifficulties oftheCommunity shipbuilding industry
inmaintaining itsposition onthemarket,attention isnowfocused ,
onexpedients -suchasimproving thefinancing conditions offered
toEECshipbuilders -designed tostimulate demandandmaintain
shipyard activity without anysignificant increase intheoverall
budgetallocations .
AtpresenttheCommission isnotplanning tomodifytheaforementioned
proposal foranewtypeofassistance fromtheSocialFund.Thebringing
intoeffectofthenon-quota operations undertheregional fund
iscurrently underconsideration .
TheCommission isengaged *inanongoingdialogue withtheparties
involved ;theircooperation inimplementing themeasures isoneof
theessential conditions forthesuccessofthesemeasures .Dialogue
ofthistypeprovides theopportunity forencouraging theindustry
todevelopconsistent internal measures designed toimproveits
competitiveness ,anobjective whichithasrecognized asapriority .

APPENDIX
1.Thetablesgivingthetrendofcompletions ,neworderintakeandorder
booksintheMemberStates'shipyards aretakenfromtwodifferent .
sources,theOECDandLloyd'sRegister ofShipping .
ι , '· " *
WheretheMemberStatesareconcerned ,theOECDstatistics constitute -
anofficial souredbuttheyprovide amorelimited rangeofdata,there
aresometimes differences ofapproach asregardsthemomentwhenan
ordercanbeconsidered beingbookedandasregardstheclassification
ofvessels,theycontain breaksinthecoefficients usedforconversions
intocgrtCPara 2)'and.do notpermitworldwide comparisons tobemade.
Thefiguresproduced byLloyd's(LRS)arenotinfallible either.However,
giventhattheypresent awiderrangeofdataandthat,overaperiod
oftime,thefiguresincgrtaremorecomparable ,aswellastheobjective
topresent homogeneous references ,ithasbeenconsidered preferable to
usethissourceforcommentaries ,itbeing,moreover,usedworldwide by
.thoseconcerned withthesematters.Thediscrepancies between thetwo..
sourcesoriginate mainlyfromdifferent thinking aboutthemoment when '
anorderisregarded asbeingdefinite,intheclassification of
vessels andinthecoefficients forconversion intocgrtin1976and1977.
Despitecertaindifferences whichcanoftenarisefromthis,thetwo
setsofdatashowtrendswhichgenerally pointinthesamedirection .
'Sincethedivergences between thetwosources areonlyrandom,andthe
presentreportisessentially concerned withindicating themaintrends,
theSreference toonlyonesourceisgenerally ofnoconsequence .
2.cgrt=compensated grossregistered ton,ameasurement whichtakesaccount
ofthevolumeofworkthatgoesintobuilding avessel,calculated on
thebasisofthegrtandofspecial .coefficients fordifferent vessel
typesandsizes(grtxcoefficient =cgrt).Newcoefficients for
calculations cgrtwereagreeduponbytheOECDin1977.TheLRSfigures
for1976arebasedonAWEScoefficients ,whichwerethebasis .forthe
OECDfiguresfor1976arebasedonOECD1967coefficients whichdiverge
markedly fromthenewcoefficients for-certain typesofship.This
explains whycertain OECDvaluesarenotatallcomparable withthe
otherseries.- y