Korean shipyards command 37% of global orders in 2021, best in 8 years

Song Gwang-sup and Lee Ha-yeon 2022. 1. 6. 14:33
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South Korean shipyards had their best year in eight years in 2021 by commanding 37 percent of worldwide vessel orders by volume or 43 percent by value thanks to increased orders for large container carriers and LNG carriers.

According to the Ministry of Trade, Industry and Energy on Wednesday, Korean shipbuilders dominated a combined 17.44 million compensated gross tannages (CGTs) in new orders last year, the biggest in eight years.

The volume jumped 112 percent from a year ago and 82 percent from two years earlier before the virus outbreak.

Korean shipbuilders bagged 37 percent of the total orders in 46.96 million CGTs placed in the world last year. The ratio by value amounts to 43 percent.

By vessel type, Korean shipyards commanded 65 percent of global orders for high value-added vessels like VLCCs and LNG carriers, and 64 percent of orders for eco-friendly vessels like ships fueled with LNG or LPG.

Korea¡¯s big three shipbuilders overachieved their annual targets – Korea Shipbuilding & Offshore Engineering Co. by 53 percent, Samsung Heavy Industries Co. by 34 percent, and Daewoo Shipbuilding & Marine Engineering Co. by 40 percent.

Outlook for this year also is bright on expectations for a rise in orders for LNG carriers. The three shipbuilding majors signed a capacity reservation pact with Qatar Petroleum in June 2020, which allows the state-owned petro company of Qatar to reserve construction capacity in Korean dockyards for more than 100 LNG ships through 2027.

Demand for eco-friendly vessels is rising as well amid stricter environmental regulations by the International Maritime Organization (IMO). Orders for LPG- and LNG-fueled ships are expected to increase with demand for replacement of aged ships on top of strengthening in ship prices.

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

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