Posted on December 17, 2024
This year, Korea’s order ratio in the global shipbuilding market is expected to record the lowest level in eight years since 2016. The year 2016 was a time when shipbuilders worldwide went through a downturn, struggling with order shortages and restructuring. The order volume is also expected to reach only a quarter of that of its competitor, China.
According to Clarkson Research, a British shipbuilding and shipping market analysis firm, a total of 60.33 million CGT (compensated gross tonnage – equivalent to 2,159 vessels) of new ships were ordered in the global market from January to November, among which Korea secured 1.92 million CGT (248 vessels). It is likely that Korea’s global order ratio in the shipbuilding industry will fall below 20% this year, the lowest level since 15.5% in 2016.
China, identified as a competitor, recorded an order volume of 41.77 million CGT (1,518 vessels), which is four times that of Korea. The difference in order volume between China and Korea currently stands at 30.85 million CGT, and this year’s gap in order volume between the two countries is expected to reach an unprecedented level. The order ratio by country was reported as 69% for China and 18% for Korea.
Korean shipbuilders noted that due to over three years of remaining order backlog, they had no choice but to select orders with limited capacity. However, there are opinions that maintaining a fundamental order volume is necessary for market competitiveness. Nevertheless, the ‘Big 3’ shipbuilders have recorded strong performances based on their order volume.
HD Hyundai (HD Hyundai Heavy Industries, HD Hyundai Mipo, HD Hyundai Samho) has received a total of $20.56 billion in orders so far this year, achieving 152.2% of its annual order target of $13.5 billion. Samsung Heavy Industries and Hanwha Ocean also recorded good performances, securing $6.8 billion and $8.15 billion, respectively, focusing on high-value-added vessels.
