Changes in the Global Shipbuilding Industry on the Examples of Selected States Worldwide in the 21st Century

Purpose: The paper aims at analysing the changes in the shipbuilding industry and the decisions of various states seeking to increase the competitiveness of Asian and European shipyards in the 21st century, the impact of the COVID-19 pandemic on the portfolio of shipbuilding orders in 2020. Design/Methodology/Approach: The method of decision analysis makes it possible to identify the causes and effects of decisions made by governments and the management of shipbuilding groups. The comparative method is used to compare the changes taking place in the European and Asian shipbuilding industries. The statistical method is used to illustrate the dynamics of the economic and financial situations of shipyards. Findings: Shipyards operate on a competitive world market which experiences cyclical fluctuations in demand for ships. The dominant position of East Asian shipyards in the world market in the 21st century is the result of state subsidies, low labor costs, and the establishment of shipbuilding groups. In 2020, due to the COVID-19 pandemic, shipowners reduced orders for ships in the wake of a decline in demand for sea transport. The pandemic crisis hit shipyards in Europe specializing in the construction of cruise ships hardest. Practical implications: The European Union should adopt solutions that will allow European shipyards to maintain their leading position in constructing complex, technologically advanced ships. To survive the difficult situation on the shipping market, the European shipbuilding industry should use its shipbuilding potential in the field of ship repairs and offshore wind energy better. Originality/value: The research conducted made it possible to present the differences between the European and Asian shipbuilding markets and compare the outcomes of decisions made by various states faced by the financial crisis of shipyards.