Friday, April 10, 2020
Korea Takes 1st Place in Shipbuilding Order Receipt in July
Beating China for 3 Months in a Row
Korea Takes 1st Place in Shipbuilding Order Receipt in July
  • By Michael Herh
  • August 14, 2019, 12:22
Share articles

Korea ranked first in global shipbuilding order receipt in July, surpassing China for three consecutive months.

Korea placed first in global shipbuilding order receipts in July, surpassing China for three consecutive months.

Korea's shipbuilding industry secured orders totaling 270,000 compensated gross tonnage (10 vessels) in July, accounting for half of the global orders that reached 550,000 CGT (25 units), said Clarkson Research, a U.K. shipbuilding and shipping analysis agency, on Aug. 13. The Chinese shipbuilding industry took second place with orders of 200,000 CGT (11 units), while Japan ranked third with 30,000 CGT (one unit).

However, in terms of cumulative orders for the first seven months this year, China still leads Korea. China picked up first place with 4.47 million CGT (a 40 percent share), followed by Korea with 3.74 million CGT (a 32 percent share). Japan came in third with 1.45 million CGT (a 12 percent share) and Italy fourth with 1140,000 CGT (a 10 percent share). Korea’s gap with China in cumulative market share widened to 17 percentage points in April, but Korea managed to narrow the gap to 8 percentage points.

As of end-July, the cumulative global orders amounted to 12.18 million CGT, down 43 percent from the same period of last year. The global order backlog at the end of July also fell by 2.25 million CGT (3 percent) from the previous month. By country, China’s order backlog decreased sharpest, recording a drop of 770,000 CGT, followed by Japan with a drop of 700,000 CGT and Korea with a drop of 560,000 CGT. However, compared to the end of July last year, China’s and Japan’s backlogs slid by 9 percent and 24 percent, respectively, while that of Korea swelled by 2 percent.

By country, China had the largest backlog of 27.95 million CGT, followed by Korea with 20.31 million CGT and Japan with 13.65 million CGT. In addition, in July, prices of high-priced ships, such as LNG carriers, remained at the same level as in June. The Clarkson Newbuilding Price Index in July was 131 points, the same as in the previous month.