Korea sweeps 60% of global vessel orders in May

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Korean shipyards swept nearly 60 percent of global vessel orders in May to stay atop in the order book rank, with their heyday fed by vessel value soaring to the highest levels in six years.

Korean shipbuilders bagged new shipbuilding contracts of 440,000 compensated gross tonnages (CGTs) or 24 vessels in May, accounting for 35 percent of world’s total of 1.27 million CGTs or 60 vessels, according to British shipbuilding and marine industry tracker Clarkson Research Services’s latest report.

Since the compiling did not include orders for 16 vessels worth 980,000 CGTs that Korean shipyards won in the last week of May, Korea’s actual May order book would come to 1.42 million CGTs, or 59 percent of worldwide total

China last month won 710,000 CGTs (31 vessels) and Japan 110,000 CGTs (5 vessels) to rank at third.

Global shipbuilding orders by yard amounted to 19.07 million CGTs in January to May, up a whopping 179 percent from virus-hampered a year ago. China secured the most, totaling 8.92 million CGTs (321 vessels). Korea trailed closely behind with 8.32 million CGTs (212 vessels), up 662 percent on year and the best since January-May 2008.

Global backlogs totaled 77.38 million CGTs at the end of May, down 710,000 CGTs from a month earlier.

Clarkson Newbuilding Price Index, showing price changes in newly built vessels, recorded 136 points, highest since December 2014, as it extended rally to the sixth straight month. A reading higher than 100 indicates upward movement in ship prices, and thus better profitability for builders.

Price of container ships (13,000 to 14,000 twenty-foot equivalent unit) rose $2 million to average at $122.5 million and very-large crude carriers also up $2 million at $95 million. Price of 174,000-cubic-meter liquefied natural gas carriers gained $1 million to $189 million.

Source: Pulse

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