As global ship orders show signs of recovery, South Korea secured nearly 40 percent of the market volume in March, significantly narrowing the gap with China compared with the previous month.

According to U.K.-based shipbuilding and shipping market research firm Clarkson Research on April 6, global ship orders in March totaled 4.06 million compensated gross tonnage (CGT) or 135 vessels. Of this total, South Korea won orders for 1.59 million CGT or 38 vessels, representing 39 percent, while China secured 2.15 million CGT or 84 vessels, accounting for 53 percent.

In February, South Korea accounted for just 11 percent, or 570,000 CGT, of global ship orders, while China held 80 percent, or 4.15 million CGT, but the gap narrowed significantly in March.

Global ship orders are on an upward trend compared with last year. While March orders declined 36 percent from February’s 6.38 million CGT, they rose 31 percent from 3.10 million CGT recorded in the same period last year. Cumulative global orders from January to March reached 17.58 million CGT, up 40 percent from 12.53 million CGT in the first quarter of last year. Of this total, South Korea accounted for 20 percent, or 3.75 million CGT, while China took 70 percent, or 12.39 million CGT. South Korea’s orders rose 54 percent year on year, while China’s increased 91 percent.

As of the end of March, the global order backlog rose by 3.56 million CGT from the previous month to 189.98 million CGT, indicating that the shipbuilding boom remains intact.

The Clarkson Newbuilding Price Index, which measures current new ship prices based on a benchmark of 100 in January 2000, stood at 182.07, up about 40 percent from 130.2 five years ago. By vessel type, prices reached $249.5 million for LNG carriers, $129.5 million for very large crude carriers (VLCC), and $260 million for ultra-large container ships.

Source:Business Korea