Falling Behind
The Korean shipbuilding industry facing troubles both at home and abroad due to the global economic slump and the restructuring hit a record low in orders in the first half of this year, tainting its image severely.
According to Clarksons Research, a global shipping and offshore market analyzer on July 4, the worldwide orders of commercial vessels from January to June of this year arrived at 225 units or 6,420,000 CGTs, which are about one third of 727units and 18,040,000 CGTs a year earlier.
Korean shipbuilders’ orders in the first half of this year totaled 830,000 CGTs (27 ships), a whopping 88-percent drop from 6,850,000 CGTs (151 ships) a year ago. The figure is the lowest in 20 years since 1996 Clarksons Research began to provide the data. It is also far lower than the previous record of 6,510,000 GGTs recorded in the first half of 1999.
The Korean shipbuilding industry received 7,790,000 CGTs even in the first half of 2009 when the global financial crisis sparked off a sharp drop in the worldwide shipbuilding orders. This fact shows the hellish reality Korean shipbuilders are facing now.
By contrast, Chinese shipbuilders topped the world market standings by inking 2,420,000 CGTs (92 ships) in the first half of this year. Even though Chinese shipbuilders’ orders fell by 1,000,000 CGTs compared to 3.420,000 CGTs (194 ships) in the first half of last year, it can be said that they put up a good fight with a worldwide order draught considered.
Italy placed second as the nation received orders to build eight vessels (890,000 CGTs). In the first half of last year, Italy won an order to build one vessel (2,000 CGTs) only but in the first half of this year, the nation jumped to second place while landing orders to build cruise ships.
Following the third-ranked Korea, Germany held the fourth place by receiving orders to build ten ships (710,000 CGTs). Like Italy, cruise ship orders contributed to raising Germany in the standing.
Japan claimed the fifth place with 520,000 CGTs (28 units). Compared to the performance its receiving 5,230,000 CGTs (237 units) worth of orders in the first half of last year, its orders tumbled to about one tenth in the first half of this year.
On the other hand, Korean shipbuilders’ new orders in June were the highest figure in recent months. The total global orders stood at 960,000 CGTs or 51 units in June. Korea came in first by receiving 370,000 CGTs (eight units) worth of orders. It is in eight months since October 2015 for Korea to rank first in monthly order standings.
In detail, DSME won orders for two LNG tankers and two VLCCs while Hyundai Samho Heavy Industries, two 158,000 DWT oil tankers. Sungdong Shipbuilding & Marine Engineering received order to build two 75,000 DWT oil tankers.
Korea was followed by China and Japan which nabbed the second and third places with 290,000 CGTs (21 units) and 210,000 CGTs (13 units), respectively.