China, the world’s No. 1 in shipbuilding orders, is likely to give it away… Impact of increased container ship orders
This year, Korea’s shipbuilding is expected to give up the world’s number one place in orders to China.
This is the result of a surge in orders for container ships, which China is focusing on this year.
However, some argue that Korea should not be attached to quantitative orders as it has filled the order backlog (remaining construction volume) for two to three years, centered on high-value-added ships with high profitability.
According to Clarkson Research, a British shipbuilding and shipping market analysis company, on the 5th, the cumulative global ship orders from January to November of this year amounted to 44,988,224 CGT (standard ship equivalent tonnage).
Of these, China took 21,1918,790 CGT and took the first place in orders with a market share of 48.7%.
Korea ranked second with 16,957,415 CGT (37.7%).
With less than a month left in this year, China is more likely to take the top spot in orders this year as China leads Korea by 5 million CGT.
Korea has been ranked No. 1 in global orders for three years since 2018, when the shipbuilding industry suffered a severe recession.
China was able to overtake Korea as it swept up orders for container ships, which increased more than 10 times compared to last year due to a surge in shipping rates.
It was found that China received 11,263,944 CGT, or 59% of the 19,103,190 CGT of container ship orders from January to November of this year.
On the other hand, it is interpreted that Korea was forced to lag behind in the total number of orders, as it received orders of 6,96,281 CGT (34.5%), which is slightly more than half of this.
Container ships are not difficult to build except for extra-large scale and eco-friendly fuel-propelled ships.
On the other hand, Korea had an overwhelming share in orders for high value-added ships such as liquefied natural gas (LNG) carriers and liquefied petroleum gas (LPG) carriers.
During the same period, 5,923,793 CGT orders were placed around the world for LNG carriers, and Korea received 5,388,722 CGT, or 91.0%.
Orders from China were only 535,71 CGT (9.0%).
An LNG carrier requires high technology because the amount of LNG lost as gas must be minimized, and for this reason, it is the most expensive among ship types.
An official from the shipbuilding industry said, “The number of orders increased a lot during this year’s ‘big cycle’, and in a situation where docks (drying space) were limited, domestic companies were selected mainly for high-margin ship types. In this situation, there is no need to dwell on the quantity of orders received,” he said.