Anglo-American Carnival Corporation stands as the world’s largest cruise operator, with brands such as AIDA Cruises, P&O Cruises, Costa Cruises, and Cunard Line operating under its umbrella. During the pandemic restrictions, the holding company and its peers faced the same pressure as the sector, appealing to public administrations to avoid default. Bank of England records reveal that AIDA, besides its regular opportunities, received substantial support amounting to £25 million from the British Manager, around €28.9 million at current rates. European shipyards like Werften also benefited in 2020. When it comes to exploring new markets, Carnival’s leadership looked east. An alliance with China Shipbuilding Industry Corporation, the country’s leading public shipyard, marked a strategic move into building ships from the ground up. The second phase of this venture has just begun. Europe’s shipyards now face a shift toward Asia, a region accounting for a dominant share of global trade.
These figures align with data shared with FARO by the Galician Naval Corps, as reported by Clarksons Research, the industry’s leading analytics firm. By midyear, the global order book surpassed 283.4 billion dollars across 3,590 contracts. A large portion, more than 221 billion, sits with shipyards in China, South Korea, and Japan. In comparison with the previous year, Asian market share rose by over five percentage points, reaching about 80 percent. This shift comes at the expense of European shipyards, which collectively hold a smaller slice of orders. Only Chinese shipyards have secured more contracts than all European Union yards combined, a consequence many observers attribute to market dynamics shaped by Beijing through CSIC.
Amid these sweeping economic tides, Spain demonstrates notable naval prowess. Vigo’s shipyards, Armón and Freire, stand out for their contracts with Iceland, the United Arab Emirates, and the United States, making Spain a central hub for oceanographic research vessels. In the first half of this year, Vigo doubled its shipbuilding activity from the prior year, delivering 64 contracts valued at around 1.6 billion euros. Depending on ship value, Spain could be near the podium in the global shipbuilding scene, though Europe still accounts for only about half a percent of the total market, indicating room for growth.
Two repairs, new workload for old Barreras
The Barreras facility has been renamed Astilleros Ría de Vigo following its acquisition by Armón. The yard will receive two tugs for repair work later this month, adding to preparations for a 50 meter long fishing vessel project for Argentina. Currently, around sixty workers at the shipyard are focused on resuming operations and maintaining cranes, stands, and other machinery.
Armón’s new owners also plan to start demolishing the old Aucosa warehouse to fuse facilities with Hijos de J. Barreras and expand available space. The land area is operating near capacity due to the current order book. Following the delivery of an oceanographic vessel for Ireland, Armón Vigo is moving ahead with another oceanographic project for CSIC. The vessel, valued at around 85 million euros, is slated to launch next June and deliver in mid-2024. The government delegate in Galicia, José Miñones, and Vigo’s mayor, Abel Caballero, recently inspected the site to review progress.
Similarly, a new oceanographic vessel is in build for New Zealand and plans exist for another for Iceland. A cruise ship for Balearia is also in the pipeline, with ambitions for zero emissions. The ship is planned to serve the Ibiza to Formentera route and is scheduled to begin operations on September 28.