Korean shipbuilders secured 44% of global ship orders in May, splitting the global shipbuilding market with China. It is evaluated that they fared well compared to the cumulative order volume this year (Korea 21%, China 68%).

This is interpreted to be due to the impact of orders for high-value-added ships, such as liquefied natural gas (LNG) carriers, whose demand has increased in the aftermath of the Middle East war.

According to data compiled by Clarkson Research, a British shipbuilding and shipping market analysis firm, on June 9, Korea secured 1.99 million CGT (Compensated Gross Tonnage, calculated by multiplying the gross tonnage indicating the volume of a ship by a coefficient for each ship type) in May. China secured 2.11 million CGT, taking 47% of the total.

There is a significant difference when comparing this with the global cumulative orders from January to May this year. Korea secured 7.08 million CGT to record 21%, and China secured 22.98 million CGT, taking 68%. This means that Korea’s share of orders increased significantly in May.

This is interpreted as being due to Korea’s success in winning orders centered on high-value-added ships such as LNG carriers. While Korea is similar in order market share, it secured 34 ships this month, which is fewer in number compared to China (97 ships).

Looking at the compensated gross tonnage per ship, Korea secured 59,000 CGT, and China secured 22,000 CGT. This means that the ships Korea secured were, on average, high-value-added ships more than 2.5 times larger than China’s.

In the same data, the global ship order volume in May was 4.52 million CGT (147 ships), a 45% decrease compared to 8.18 million CGT in the previous month. However, it increased by 91% compared to 2.37 million CGT in the same period last year.

The global cumulative orders also amounted to 33.56 million CGT (1,108 ships), a 62% increase compared to 20.66 million CGT (863 ships) in the same period last year.

The order backlog of global shipbuilders stood at 200.2 million CGT at the end of May, an increase of 3.79 million CGT compared to April, increasing by 3.79 million CGT from April.

By country, Korea accounted for 37.06 million CGT (19%) of the order backlog, and China accounted for 129.43 million CGT (65%).

Compared to the previous month, Korea increased by 140,000 CGT, and China increased by 3.17 million CGT. Compared to the same period last year, Korea increased by 1.16 million CGT, and China increased by 25.52 million CGT.

The Clarkson Newbuilding Price Index, which indicates the price of new ships, recorded 185.01 in May. It increased by 1.6 points (p) from last April (183.41). Compared to May 2021 (136.14), which was five years ago, it rose by 36%.

By ship type, an LNG carrier was $248.5 million, a very large crude carrier (VLCC) was $130.5 million, and an ultra-large container ship (22,000 to 24,000 TEU class) was $261.5 million.

Source:Business Korea