EUROPEAN COMMISSION CRITICISES KOREAN SHIPYARDS

EUROPEAN COMMISSION CRITICISES KOREAN SHIPYARDS    The European Commission said that low prices offered by South Korean shipyards continue to cause the “price depression” of the international shipbuilding industry.
   In its third report on the situation of the world shipbuilding market, the EC found that the world shipbuilding market continues to face serious difficulties and “South Korea is responsible for continuing market crisis.”
   Despite an agreement between Korean and EU authorities in June about commitments from South Korea in relation to non-intervention in the financing of shipbuilding, bilateral talks with South Korea ended without results, the EC said. According to the EC, the South Korean shipyards are making “significant losses.”
   “Despite increased ordering activity in the first 8 months of this year due to favourable market conditions in liquid bulk shipping, and to the development of new innovative ship concepts (very large container ships), ship prices have not recovered from the massive drop since 1997,” the EC said.
   Prices for non-tanker ship-types have continued to decline over the past 12 months, whereas tankers have seen slight price increases of 5 to 10 percent.
   The EC said that South Korea is now the biggest shipbuilder in the world and its shipyards took more than 40 percent of all new orders in the first 8 months of the year.
   The European shipbuilding industry has filed a complaint with the EC under the Trade Barriers Regulation. The EC said that it is considering a complaint before the World Trade Organization.