Sunday, November 18, 2018
Korean Shipbuilders Rank First in Landing New Orders
Struggling to Attain Annual Targets
Korean Shipbuilders Rank First in Landing New Orders
  • By Jung Min-hee
  • September 12, 2018, 12:48
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The three major Korean shipbuilders achieves only half of their targets that they had set at the beginning of this year at the moment when two thirds of this year already passed.
The three major Korean shipbuilders have achieved only half of their annual targets at the moment when two thirds of this year already passed.

Korea ranked first in new shipbuilding order receipt in August by taking up 540,000 CGTs (10 vessels) or 42% of the total global orders of 1.29 million CGTs (45 vessels), according to Clarkson Research, a provider of global shipping and offshore market intelligence. China took second place with 320,000 CGTs (14 vessels), followed by Taiwan with 280,000 CGTs (10 vessels).

Korea also placed first in terms of cumulative order receipts from January to August this year by posting 7,560,000 CGTs (172 vessels), followed by China with 5.7 million CGTs (268 vessels) and Japan with 2.04 million CGTs (85 vessels).

Vessel prices are also on the rise. The Clarkson Newbuilding Price Index (NPI) in August marked 129 points, a one point increase from the previous month. In particular, the prices of liquefied natural gas (LNG) carriers, which have shown little change this year, rose by US$2 million per ship from the previous month.

Uncertainties surrounding the Korean shipbuilding industry are being gradually resolved, but it is still too premature to take an optimistic view.

In fact, three major Korean shipbuilders have achieveed only half of their annual targets at the moment when two thirds of this year already passed. Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) won orders worth US$15.8 billion as of the end of August, only 55% of this year's target (US$ 28.7 billion)