As steel prices remain elevated and supply chain disruptions delay price declines, a new proven structural ship repair technique could help owners keep costs down and assets on the water. Jonny Lim, Director at SPS Technology, reports.
The extreme price of steel has been widely discussed in the shipping industry press this year. As many headed for their summer vacations, The Maritime Executive carried an online story titled ‘Surging Steel Prices Hurt Shipbuilders While Driving-Up Scrap Values’, which outlined the impact of price rises across the industry.
With Q4 2021 approaching, steel costs have started to level off, although localised pricing can vary greatly because of many factors including scale and availability. Furthermore, production capacity forced to take a hiatus during COVID-19 lockdowns is continuing to play catch-up. This means steel markets and the additional costs buyers are currently paying are unlikely to normalise overnight.
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The pandemic has caused ship owners to re-evaluate many aspects of their operations and highlighted fundamental areas within the shipping industry where change is required. Structural composites represent a fresh yet established approach to ship repair, which will remain highly effective and economical now and in the future – even when steel prices drop.
Jonny Lim, Director at SPS Technology