(SEOUL=Yonhap News) Despite the global recession, Korean shipbuilders have stayed in the top 3 spots for order backlogs, according to a report.
The scarcity of shipbuilding orders worldwide has also hit Korea, however, resulting in a rapid decline in orders received by Korean shipbuilders, while their competitors in Japan and China, supported by domestic orders, are threatening to overtake them in ranking, making it difficult to celebrate just yet, sources say.
According to the monthly World Shipyard Monitor published by the London-based Clarkson Research Services on Feb. 20, Daewoo Shipbuilding & Marine Engineering's Okpo Shipyard currently has the world's largest order backlog with 6.384 million CGT (compensated gross tonnage, 91 ships) as of late January 2017.
In second place was Samsung Heavy Industry's Geoje Shipyard (3.726 million CGT, 70 ships), and Hyundai Heavy Industry's Ulsan Shipyard (3.342 million CGT, 69 ships) placed third.
The No. 4 and 5 spots went to China's Shanghai Waigaoqiao Shipbuilding (2.402 million CGT, 58 ships) and the Japanese Imabari Shipbuilding's Saijo Shipyard (1.92 million CGT, 33 ships), respectively.
China's Jiangsu New Yangzi Shipbuilding ranked No. 6 (1.78 million CGT, 76 ships), followed by Hyundai Samho Heavy Industries at No. 7 (1.745 million CGT, 44 ships), and Hyundai Mipo Dockyard at No. 8 (1.679 million CGT, 75 ships).
The Korean shipbuilders that ranked in the top 3 spots in late Jan. 2017, had maintained their ranking from the previous month, as well as China's Shanghai Waigaoqiao Shipbuilding at No. 4.
Hyundai Samho Heavy Industries, however, dropped two spots from No. 5 in late Dec. 2016.
The drop seems to have been a result of Hyundai Samho Heavy having delivered ships, significantly lowering the order backlog to 1.745 million CGT (44 ships) from the 2.064 million CGT (61 ships).
During that time, Imabari's Saijo Shipyard and Jiangsu New Yangzi both climbed one spots each.
According to a shipbuilding source, "although Korean shipyards have remained in the top 3 spots for shipbuilding order backlog, it will only last for a year or so," adding, "orders received two to three years ago are keeping them afloat, but it is no cause for celebration."
Meanwhile, by shipbuilding group, Clarkson ranked Daewoo Shipbuilding & Marine Engineering No. 1 in shipbuilding order backlog, followed by Imabari Shipbuilding, Hyundai Heavy Industry, and Samsung Heavy Industry, in that order.
Japan's Imabari Shipbuilding overtook Hyundai Heavy Industry last Dec. as holder of the world's second largest shipbuilding order backlog, and it seems the new ranking will remain that way for the time being, as the backlog gap continues to widen between the two companies.
One month from late Dec. 2016, Imabari saw its backlog fall from 6.263 million CGT (204 ships) to 5.971 million CGT (188 ships), while Hyundai Heavy witnessed a steeper decrease from 5.952 million CGT (135 ships) to 5.443 million CGT (123 ships).
Daewoo Shipbuilding & Marine Engineering's order backlog had been 6.793 million CGT (104 ships) in late Dec. 2016, and was reported to be 6.601 million CGT (99 ships) as of late Jan. 2017.
yjkim84@yna.co.kr
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Source: Yonhap News (Feb. 20, 2017)