South Korean shipbuilders won 37 new vessel orders in the first six months of this year, less than half of 92 ships in the same period a year ago amid the worst global market slump in four years.

According to data from UK-based marine industry tracker Clarkson Research Services on Tuesday, global shipbuilding orders in the January-June period totaled 5.75 million compensated gross tons (CGTs) or 269 ships – which is 42 percent of the levels in the same period last year. The tally is the lowest since the researcher began compiling related data in 1996. It is also a 25 percent drop from 7.66 CGTs in the first half of 2016 when the shipbuilding industry suffered deep recession.

By country, Korea logged orders totaling 1.18 million CGTs, or 37 ships, behind Chinese shipyards with 3.51 million CGTs or 145 ships. In the first half of last year, Korean shipyards won 92 vessel orders and in the first half of 2018 150 vessels. Even during the first half of 2016 when the shipbuilding industry faced severe slump Korean shipbuilders had brought home orders of 30 ships.

By value, Korean shipbuilders won $3 billion worth of orders and Chinese players $6.9 billion. The unit cost per vessel for Korea was $80 million, 60 percent higher than China’s $50 million.

The gap between China and Korea, meanwhile, has been narrowing, data showed.

The unit cost of Chinese ships was 40.7 percent versus Korean ones in 2018, 46.5 percent in 2019, and 57 percent this year.

By vessel type, new orders of A-Max type tankers jumped 19 percent during the cited period while those of very large crude carriers fell 48 percent, container vessels 11 percent, bulk ships 71 percent, and large LNG vessels 87 percent.

As of end of June, global shipbuilders’ order backlog reached 70.77 million CGTs, down 2 percent from a month ago. Korea’s order backlog reached 19.76 million CGTs, accounting for 28 percent of the total while China held 26.13 million CGTs (37 percent) and Japan 9.54 million CGTs (14 percent).

In June alone, global new shipbuilding orders stood at 820,000 CGTs or 30 ships, only 51 percent of the same period last year. From a month ago, the tally was 26 percent higher.

By country, Chinese shipbuilders won orders totaling 460,000 CGTs, followed by Korean players with 250,000 CGTs, and Taiwanese shipyards 40,000 CGTs.

Industry insiders noted that global energy firms have delayed investments and making LNG carrier orders in the first half amid coronavirus pandemic. Global shipbuilding orders may improve in the following months with new large scale LNG carrier orders from Mozambique and Russia, they said.

By Pulse

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