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(AFP) Competition, economic recession and terrorism have mined the waters of Europe's shipping industry, causing captains to send SOS signals to EU leaders.

"European shipyards have reached the survival limit in terms of prices," Dutch representative Sjef van Dooremalen warned Tuesday as he co-presided an annual forum of shippers in Naples.

"I do not rule out bad news in the coming months, in terms of shutdowns and firings." His counterpart and forum host, Naples shipowner Emmanuele Grimaldi said: "The key to success of European maritime industries is sustainable investment.

"The European fleet represents 41 percent of the world's merchant marine, 111 billion euros (109 billion dollars) in added value, 159 billion euros in sales, and jobs for 2.4 million people.

"The decline of European maritime transport has been halted despite economic stagnation and successes have been recorded in the short sea shipping sector, the seaborne highways in which market share has risen in 20 years from 37 to 43 percent," Grimaldi stressed.

Much nonetheless remains to be done, and Europe has not meet the sector's expectations, players told European Transport Commissioner Loyola de Palacio, who was invited to the forum.

On October 22, the EU filed a complaint against South Korean shipbuilding practices with the World Trade Organisation, arguing that builders have been able to sell ships below cost because of government subsidies.

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