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Amid Order Drought, Korean Shipbuilders Reclaim Top Spot in February
Global Shipbuilding Orders Plunge 76% in Jan.-Feb. Period
Amid Order Drought, Korean Shipbuilders Reclaim Top Spot in February
  • By Jung Min-hee
  • March 11, 2020, 13:51
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An LNG carrier built by Hyundai Heavy Industries

South Korea ranked first in shipbuilding order receipts in February amid a sharp decline in global shipbuilding orders. In January, Korean shipbuilders were pushed back to second place by their Chinese counterparts, who received many orders from Chinese clients.

Worldwide vessel orders in February stood at 300,000 CGTs (18 units), with Korea taking 200,000 CGTs (8 units), said Clarkson, a British shipbuilding and marine market analyst on March 10. Korea held a 67 percent share. The Philippines ranked second with 60,000 CGTs (4 units) and Japan third with 30,000 CGTs (1 unit). China won an order for a 680 TEU container ship which was 8,000 CGTs. The report did not include three shuttle tankers that Samsung Heavy Industries won on Feb. 28.

The world's total ship orders during the January-February periods of the last three years arrived at 4.89 million CGTs — 1.77 million CGTs in the same period of 2020 this year, 4.89 million CGTs in the same period of 2019 and 7.77 million CGTs in the same period of 2018. By February this year, worldwide cumulative orders plummeted 76 percent on year. LNG carriers (Larger than 140,000 cubic meters) which Korea excels in manufacturing have not been ordered until February this year. However, if orders for large-scale LNGs are placed by Qatar and Mozambique, orders to Korea are expected to further climb.

At the end of February, China's order backlog came in first with 26.16 million CGTs. Korea ranked second with 21.28 million CGTs and Japan placed third with 10.91 million CGTs.

Global ship deliveries in February stood at 1.71 million CGTs, down 66 percent from 3.49 million CGTs. Ship deliveries by Chinese shipbuilders shrank 96 percent from the previous month, the biggest decline among countries. Those by Korea and Japan sank 54, percent and 39 percent, respectively. Clarkson predicted that Chinese shipyards were likely to be delay deliveries to be made in early 2020 due to a lack of manpower and equipment."

Ship prices by types were unchanged. They were US$186 million for an LNG carrier (174,000 cubic meters), US$144 million for a large container ship (22,000 TEUs to 22,000 TEUs), and US$92 million for a VLCC.