South Korea Maintains Lead on Orders

file photo courtesy of Samsung Heavy Industries
file photo courtesy of Samsung Heavy Industries

Published Jul 9, 2019 9:24 PM by The Maritime Executive

South Korea maintained the top spot in global shipbuilding orders in June for the second month in a row.

According to Clarkson Research Services, South Korean yards won orders to build six ships, totaling 340,000CTG, more than half of the orders placed in June. Chinese yards won orders to build seven ships, totaling 240,000CGT, and Japan won orders to build five ships, totaling 90,000CGT.

So far this year, ordering has been slow, nearly half that of the same period last year. South Korean yards have won orders to build 69 ships, totaling 3.17 million CGT, while Chinese yards have won orders for 176 ships, totaling 4.32 million CGT - 42 percent of orders globally. 

South Korean yards have had a strong focus on LNG carriers, winning over 80 percent of global orders in recent years, according to Yonhap news agency. For example, Samsung Heavy Industries announced in June that it received an order for two LNG carriers, bringing its 2019 order total to 11 vessels worth $3 billion consisting of 10 LNG carriers and one FPSO. The yard's orders for 2018 reached 49 vessels - including 18 LNG carriers, 13 container ships, 15 tankers and three special purpose ships. 

Also in June, Daewoo Shipbuilding & Marine Engineering (DSME) won an order for an LNG carrier from Greek shipping company Maran Gas Maritime, and the companies are in discussion for more. DSME's orders this year include 15 vessels, six of which are LNG carriers.

Earlier this year, Clarkson Research Services predicted that LNG carrier orders globally are likely to reach 69 this year, up from 65 last year and 17 in 2017. Demand is being driven in part by China's growing use of LNG and the adoption of LNG globally as a more environmentally friendly fuel. 63 LNG carriers are expected to be ordered on average annually from 2020 to 2027.