Shipbuilding orders fall by 36.9 % in first half this year

Shipbuilding orders received by Korean shipbuilding companies plunged in the first half this year.

The Korea Shipbuilder's Association unveiled on July 12 that Korean shipbuilding companies received orders for 4,167,000 CGT (Compensated Gross Tonnage), down by 36.9% from 6,667,000 CGT last year. Equivalent vessel numbers decreased to 121 from 192. However, production increased slightly by 4.5% to 3,415,000 CGT from 3,267,000 CGT.

Low ship orders accounted for record high shipbuilding order results last year. If the current trend of receiving 700,000 CGT per month on average continues to the end of this year, it is expected to break the past annual average record at some point during this year.

By vessel type, orders for Liquid Natural Gas Carriers, a high value-added vessel, increased to 12 this year from three in the first half of last year, giving cause for the Korean shipbuilding industry to focus more on high value added vessels.

Remaining work orders as of the end of June came to 17,018,000 CGT. This amount of work should take two and half years to complete.

A source at the KSA said, "Following last year, we are enjoying favorable business conditions securing work. We are expecting to build around 6,100,000 CGT this year, a slight rise over last year".