CESA
Reacts on the "irresponsible behaviors" by banks
to European yards

DEC, 09.2008

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CESA (Community of European Shipyards’ Associations) urgently appeals to banks and to policy makers to safeguard continued availability of working capital for shipyards. Solid and profitable projects are endangered if European yards are taken into custody based on a global industry performance.   

However, despite limited exposure to negatively affected shipping trades, many European yards are facing an irresponsible behavior by banks, withdrawing credit facilities during the construction period.

The financial and economic crisis has triggered an abrupt halt to any ordering activity for new ships. Contrary to large cargo ships, which are mostly built in Asia and where excess tonnage has caused a sharp decline of charter rates, many specialized vessels are operating higher profitable.

New projects are temporarily hampered by redused availability and higher cost of financing in all segments but CESA is optimistic that European yards are largely well placed due to healthy orderbooks in various niche markets.