S. Korea sweeps 52% of vessel order book in Q1

[Photo by Korea Shipbuilding & Offshore Engineering Co.]

South Korean shipbuilders swept over half of vessel orders in the first quarter to command a comfortable lead in the global market.

Korean shipbuilders netted combined orders of 5.32 million compensated gross tonnage (CGT) or 126 vessels from January to March, according to a report by British shipbuilding and marine industry tracker Clarkson Research Services on Sunday. They accounted for 52 percent of 10.24 million CGT or 323 vessels procured across the world.

The amount is a 13-year high and 10 times the level in the same period a year ago.

Trade data showed vessel exports jumped 29 percent on year to $7.35 billion in the first quarter, the best since 2016.

The big 3 shipyards of Korea – Korea Shipbuilding & Offshore Engineering (KSOE), Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) secured a combined 14 trillion won ($12 billion) worth of shipbuilding orders.

KOSE, the largest in the world, landed contracts worth $5.5 billion, achieving 37 percent of this year’s target. Its first-quarter orders of 68 vessels did not include offshore plant deals.

Samsung Heavy Industries has achieved 65 percent of its order target of $7.8 billion set for this year. The shipbuilder so far has bagged orders for 42 vessels, including a mega deal to construct 20 large container ships for Taiwanese firm Ever Green.

DSME clinched new orders worth $1.79 billion for 19 ships, including 10 LNG-powered big oil tankers. The shipbuilder aims to win $7.7 billion orders this year.

Daehan Shipbuilding, a mid-sized shipyard, will newly build 8 vessels, including an oil tanker and a petroleum products carrier.

Korean shipyards benefited from their fast migration to green vessel technology.

Korean shipyards are responsible for about 80 percent of the total 5.6 million CGT in the global order book for high value added vessels in the first quarter. Global orders for vessels powered by eco-friendly fuel amounted to 2.69 million CGT and Korean shipbuilders are responsible for 78 percent.

Clarkson Research Services projected global shipbuilding orders to reach 31.5 million CGT this year, up 54.1 percent on year.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]