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Korea Begins New Year at No. 1 in Shipbuilding Orders, Outpacing China and Japan
According to Yonhap News, 

Korea wins 55.5% of global shipbuilding orders, followed by China at 18.3%, Japan at 4.1%.

(SEOUL=Yonhap News) Korean companies outpaced its Chinese and Japanese counterparts in shipbuilding orders for the first month of the new year.

According to the London-based Clarkson Research Services Feb. 7, a total of 600,000 CGT (compensated gross tonnage, 31 ships) shipbuilding orders were made in Jan. 2017, around the world, similar to the order of 560,000 CGT made during the same period last year.

Korea received orders to build 7 ships (apprx. 330,000 CGT), including 2 floating storage re-gasification units (FSRUs), 2 very large crude carriers (VLCCs), and 3 oil product tankers. It is a significant improvement from the orders of 20,000 CGT (1 ship) last January, or 130,000 CGT (3 ships) the previous month.

Samsung and Hyundai Heavy Industries each took orders for one FSRU, while Hyundai also signed with crude-oil tanker company DHT Holdings to build 2 VLCCs. Dae Sun Shipbuilding and Engineering Co. and Hyundai Mipo Dockyard Co. won orders for oil product tankers, the former 2 ships, the latter one.

In contrast, Chinese and Japanese shipbuilders received 110,000 CGT (8 ships) and 20,000 CGT (1 ship) orders, respectively, a significant fall from the 300,000 CGT (25 ships) and 90,000 (7 ships) ordered during the same period last year. Korea accounts for 55.5% of global shipbuilding orders made in Jan. 2017, followed by China at 18.3%, and Japan at 4.1%.

According to an industry source, "the entire order volume is similar to last year's levels, and it is too early to make judgments with only one month," adding, however, "Korean shipbuilders have kicked off the new year with a positive start."

As of late Jan., total backlogged orders worldwide amounts to 81.87mn CGT, the lowest figure in 12 years and 5 months, since the record of 80.99mn CGT late August, 2004.

By country, China, at 28.4mn CGT, has the most order backlogs, followed by Japan at 9.26mn, and Korea at 18.97 CGT.

Ship deliveries increased to 5.02mn CGT from last month's average of 2.89 CGT.

The prices of oil tankers and LNG carriers both continued to decline.

The price of VLCCs fell to USD 2.5mn in a month, while Suezmax and Aframax tankers both became USD 1mn cheaper. LNG carrier prices also went down by USD 3.5mn per ship.

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Source Text

Source: Yonhap News (Feb. 7, 2017)

** This article was translated from the Korean.
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