News Analysis: Brazil is presently fabricating 370 ships, including fourteen oil rigs and 28 drill ships for the Petroleum Industry. Although this number of fabrications is small (relative to world ship construction numbers) it will make Ship Purchasers attentive to the country’s building capabilities; this in turn could bring additional orders to Brazil.
New Builds will be necessary as Ship Owners look to replace polluting Aging Vessels that are more costly to operate. Power Plants are definitely more efficient than those built 20 to 30 years ago. To gain most from a ‘Time Charter’ or the “Spot market”, Fuel Consumption may make the difference between a Daily Profit or A Loss. For example, as the “Baltic Dry Index” falls, as is happening NOW, Operating Efficiency is Imperative for Ship Owners; they are being paid less for vessel use.
For the myriad of Ship Owners who are highly leveraged, if Interest Rates start to go up, which is likely, Debt Service will increase and many more Bankruptcies will commence. This, the Shipyards of Brazil will have to look out for so they do not gain overcapacity in a possible future market scenario.
For now, Brazil’s Shipyard activities look very bright.
Reality.
Reference: http://riotimesonline.com/brazil-news/rio-daily/new-brazilian-shipyards-to-generate-30000-jobs/