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Ship Power market development

2010 contracting activity stronger than expected

The number of vessels contracted in 2010 represented an increase of 75% compared to the previous year. This was a much faster and more significant recovery than expected. The improvement was backed by a recovery in trade and ship owner earnings, as well as by attractive new building prices. A more positive outlook for ship financing, together with low interest rates, also contributed to the development. While the first half of the year was characterised by high contracting activity for bulk carriers, the second half saw a similar increase in contracting activity for container vessels and more specialised vessel types. The offshore segment continued strong throughout the year and demand was good especially for floating production units. In the fourth quarter demand for more specialised vessels was good.

Ship power geographical markets - China the biggest market

As expected, the Asian shipbuilding market, and especially China emerged stronger than earlier after the downturn. In 2010, China secured the majority of global new building orders, followed by Korea. Both Japan and Europe lost market share in 2010. Growing shipbuilding nations, such as Brazil, were active throughout the year and secured a good share of orders.

In 2010, Chinese ship owners were the most active, ordering more than 20% of all vessels ordered. German owners, traditionally strong in shipping, were slow in ordering whereas Greek owners continued to be active.

Ship Power market shares

Wärtsilä's market share in medium speed main engines increased from 32% at the end of the previous quarter to 42%. The company's market share in low speed main engines increased slightly to 13% (12). In auxiliary engines the market shares increased slightly to 4% (3).