Shipbuilding world predicts procurement boom for PCCs next year

It is anticipated that the EU will impose restrictions on a single hull tankers. At the same time, the shipbuilding world predicts a special procurement boom of PCC (Pure Car Carrier) ships next year.

With this outlook, Hyundai Mipo Dockyard and STX Shipbuilding may make great advances in bringing the Korean shipping world back into a favorable business environment.

On December 10, the shipbuilding world reported that with respect to the sunken Prestige last month in Spain, the EU would hold a conference in Denmark to discuss restrictions on a single - hull tankers. The general feeling seems to be that PCCs, and mid-sized or small sized tankers, in the 10-80 thousand DWT class will profit under the circumstances.

Because most old ships are PCCs and the alternative of ordering larger ships limited, orders for PCCs are expected to boom. As the EU is the largest PCC market, Korean PCC builders are poised for a bright future.

In fact, most PCCs in the 10-80 thousand DWT class in Europe are single-hulled and aging ships in need of replacement. Further, orders for MR class vessels - in the 27.5-50 thousand DWT category - and LR1 vessels - in 55-80 thousand DWT category -are expected hit 70 for MRs and 20 for LR1s. In competition for vessel order are China and Japan, however Korea has distinct advantages in both price and quality. Especially, the Hyundai Mipo Dockyard and STX Shipping, possessing 60% of ordered PCCs, already have enough orders for 2-3 years. With good prospects in the PCC market, they seem likely to make even greater advances. And with enough supply in the market, excessive competition among companies will be relieved and most companies will make a good showing. But some people predict that the big 3, Hyundai, Daewoo, and Samsung, having put so much emphasis on large-sized oil and LNG ships in the past, will go head-to-head cause the in fierce competition to participate in the PCC ship market.