S. Korea tops global shipbuilding order in Nov with high-value LNG vessels

[Source: Samsung Heavy Industries Co.]

South Korea topped the global ship orders in November for the second month in a row, thanks to growing demand for eco-friendly liquefied natural gas (LNG)-powered vessels.

The county grabbed 58 percent of ship orders newly placed across the world last month, according to Clarkson Research Services on Tuesday. Korean shipyards obtained orders for 770,000 compensated gross ton (CGT) out of global orders of 1.31 million CGT last month. China came second with 460,000 CGT.

It is the second month in a row for Korea to top the global ship order, led by rising demand for LNG-powered vessels.

Last month, LNG vessels accounted for 45 percent (600,000 CGT) of total global shipbuilding orders, providing boon for Korean shipyards leading the green ship sector.

Worldwide shipbuilding orders for this year through November hit 45.07 million CGT, more than doubled from 18.97 million CGT recorded a year earlier.

China took home 49 percent (21.92 million CGT) of the January-to-November orders, followed by Korea with 38 percent (16.96 million CGT), and Japan with 9 percent (3.93 million CGT).

Global order backlog fell 500,000 CGT to 90 million CGT in November from previous month. Korea recorded an increase of 310,000 CGT to 28.99 million CGT. China and Japan saw order backlogs drop 420,000 CGT and 250,000 CGT, respectively.

Korean shipyards’ new contracts inked last month averaged at $123 million per vessel, 3.5 times higher the average of $35 million per ship in the orders that went to China.

The Clarkson Newbuilding Price Index, tracking the price change in newly built ships, added 1.3 points to reach 153.6 points in November, staying on the upward trajectory throughout the year.

Newbuilding price for LNG ship averaged at $25 million, up 10 percent on year.

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