Wartsila says capacity limitations at shipyards and increased newbuilding prices are continuing to dampen investment appetite in some sectors.
The Finnish marine technology company believes it is more important than ever that suppliers meet equipment delivery deadlines.
Roger Holm, president of marine power at Wartsila, told TradeWinds that for LNG carriers, “you need to go very far [out] to get the slot and then the prices have increased quite a lot during the last few years”.
“I think we start to see clearly shorter delivery times for cruise vessels compared to where we were pre-Covid, because the ordering pipeline is getting shorter,” he said.
Tamara de Gruyter, president of marine systems at Wartsila, said: “When you look at the big yards in South Korea, but also some of the bigger reputable yards in China, of course, they’re quite fully booked.”
She added that there was already some discussion about whether some of the capacity that was mothballed a couple of years ago should be brought back.
“When I talk to the Chinese yards, they say please make sure that you deliver on time,” de Gruyter said. “Because for them, it’s like a snowball. They’re so full they cannot have any disruption to their schedule. We as a supplier also need to be there.”
An important milestone is coming for Wartsila in terms of its first ammonia-fuelled engine.
Holm said: “We will have the ammonia technology ready within this year and we are well on track for that one. Testing has gone really well and of course, it’s not that many months left of the year, but we are proceeding according to plan.
“We estimate our first ammonia engine delivery to be probably towards the end of next year.”
Profit soars in third quarter
De Gruyter added: “Ships also need to have the fuel systems, the cargo handling systems, the reliquefaction systems, of course, that’s also good news for our gas solutions business.”
Net profit in the third quarter rose to €82m ($87.2m) from €3m a year ago, while revenue climbed to €1.45bn from €1.43bn.
Wartsila has signed a 15-year technical management agreement with China LNG Shipping for the world’s largest shallow-draught LNG carrier, and Australian shipbuilder Incat Tasmania has selected Wartsila for the world’s first zero-emissions lightweight ropax.
The 130-metre vessel will also be the biggest battery-electric unit ever built.
