The Korean shipbuilding industry’s order share fell to a single digit in June. The unusually small order share is a result of the saturation of dock space due to a backlog of more than four years’ worth of orders which has led Korean shipbuilders to selectively take orders.

Global ship orders totaled 2.43 million CGT in June, down 45 percent from the same month of 2023, according to Clarkson Research, a UK-based shipbuilding and shipping market analyst.

China topped the order intake standings with 1.9 million CGT (74 ships), a 78 percent share. Korea’s order intake share fell to 9 percent with only 220,000 CGT and 8 vessels.

In addition to selectively taking orders due to the saturation of shipbuilding docks, Korean shipbuilders faced a slowdown in orders for liquefied natural gas (LNG) carriers about which Korean shipbuilders have a competitive edge.

However, it is encouraging to note that orders to Korean shipbuilders in the first half of 2024 totaled 5.94 million CGT (132 ships or 25 percent), up 9 percent from the same period of 2023.

At the end of June, the global shipbuilding order backlog totaled 133.35 million CGT, down 1.36 million CGT from the end of May, with China accounting for 68.95 million CGT (52 percent) and Korea 38.29 million CGT (29 percent).

Source: BusinessKorea