Latvian Maritime academy

Also during three years period from 2009 till 2011 according by CESA new orders in Europeanshipbuilding companies increased by more than 40% and consisted of 27 thousand billion euro, of whichLithuania’s shipbuilding companies captured 0.4%. Most of the new orders were made in Germany,Norway, Spain, Italy and Netherlands (Figure 2) because of bigger capabilities. Amount of new shiporders in Lithuania is one of smallest in CESA countries in 2010 years.Shipbuilding sector in 2010 were quite small. Only Germany got new orders that overall tonnagewere about 650 thousand tons, less got the Norway shipbuilders – 400 thousand tons, and Lithuania’sshipbuilders had just over 16 thousand tons (Figure 3a).a) b)Figure 3. New and executed orders dynamics in shipbuilding sectora) new orders in CESA countries in 2010, thousand. t.; b) built ships by tonnagein 2011 in Baltic Sea region, thousand t [2]While analyzing market it is very important to evaluate its geographic position and companies inmarket. Analyzing CESA countries shipbuilding market we can see that there are no such factors asgeographic position or conditions of competition. From all CESA countries which are located in Balticsea region and also have shipbuilding facilities, only Poland, Denmark, Finland and Lithuania have theleast new orders of all CESA countries (Figure 3a).Analysing shipbuilding market of Baltic Sea region, we can see that Scandinavian shipbuilders holdleading positions, Denmark (199 thousand t), Finland (192 thousand t) and Sweden (187 thousand t)(Figure 3b). These countries have huge technological capabilities and experience (Scandinavianshipbuilders are the oldest shipbuilding countries in Baltic region) therefore they are able to build huge,technologically advanced and powerful vessels, that aspire to leadership positions trough Europeanregion. These countries shipbuilders have built over 400 types of ships.Polish shipyards built 87 thousand t., Lithuanian shipyards - 44 thousand t., Latvian shipyards - 33thousand t and Estonian shipyards - 25 thousand t. and all these take the lowest positions. This kind ofcountries positioning indicates that in different Baltic Sea region locations are different conditions ofmarketing and competition [11]. Scandinavian countries shipbuilders are close to North Sea, where aremore CESA shipbuilding countries. Poland’s Shipbuilding companies are at the south of the Baltic Seaand closer to the trade spots, than Eastern Europe countries like Lithuania, Russia, Latvia and Estonia[10]. Because of huge competition in Baltic Sea region it can be said that shipbuilding in this regionaccording to CESA will grow, but because of geographic factors increase will not be huge [3].Identification of main influencing factors of shipbuilding processShip building starts with proposal of requirements. It is when customer and manufacturer of theship, based on the specifications (simplified specifications) provided by customers, we lay out a broaddesign to get a rough overall picture of the ship. Than the manufacturer suggests their offer about thedesign of the ship, specifications and price that based on the customer’s desire. The proposal is a veryimportant step for the manufacturer since customers largely depend on this proposal to decide whether toplace an order to produce or not. Once proposal is accepted, manufacturer proceeds to discuss thespecifications in detail and settle on the final price of the ship. Once the ship price, shipbuilding process,general layout, specifications are determined, an agreement is made. Then it‘s time to test the76