Home Top News Chinese Shipbuilders outperform Korean Dockyards for two years

Chinese Shipbuilders outperform Korean Dockyards for two years


Clarksons Research announced on Dec. 29 that this year’s global shipbuilding orders are 41.93 million CGT, down 22 percent from a year ago. The orders include 15.64 million CGT and 20.34 million CGT that went to South Korean and Chinese shipbuilders, respectively. The South Korean companies’ share was the highest in the market in 2018, 2019 and 2020 but the Chinese companies outperformed them last year and this year.

This year, LNG carrier and container ship orders accounted for 65 percent and 27 percent of the South Korean companies’ new contracts, respectively. Their new bulk carrier contract is zero. In the case of the Chinese companies, container ship, LNG carrier and bulk carrier account for 33 percent, 22 percent and 16 percent, respectively.

This year’s new LNG carrier orders add up to 14.52 million CGT. The amount jumped 130 percent year on year in the wake of the war in Ukraine. 70 percent and 30 percent of the new orders went to South Korean and Chinese shipbuilders, respectively. Last year, the ratios were 93 percent and 7 percent.

LNG carrier orders are expected to increase a lot next year with regard to Qatar’s LNG development project that started this year. “South Korean shipbuilders’ capacity until late 2026 is already full and they are in no condition to accept new orders,” said an industry source, adding that this is why orders are turning towards Chinese suppliers.

Source: BusinessKorea

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