Sunday, February 5, 2023
spot_img
HomeHeadlinesS. Korea: New Shipbuilding Orders Set To Drop In 2022

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

S. Korea: New Shipbuilding Orders Set To Drop In 2022

New shipbuilding orders are forecast to decrease next year. This is because container shipping companies which aggressively placed shipbuilding orders due to high shipping rates are more likely to decrease their orders.

Investment in container ships, which pushed up new shipbuilding orders in 2021, will slow down in 2022, forecast the Overseas Economic Research Institute of the Export-Import Bank of Korea in a report on Oct. 24. This is expected to lead to a drop in global orders next year.

The report predicted that global orders for new shipbuilding and orders will reach 41.3 million CGT (standard converted tons) and US$96.5 billion (about 113 trillion won), respectively, in 2021. The figure jumped 81.1 percent and 94.5 percent, respectively, from 23.2 million CGT and US$49.6 billion (58 trillion won) in 2020. However, next year’s order volume and order value are expected to fall 15.3 percent and 10.9 percent, respectively, from 2021 to 35 million CGT and US$86 billion (101 trillion won).

The report predicted that Korea’s shipbuilding order intake will also decrease in 2022 as global orders will shrink. While Korean shipbuilders are expected to record 17 million CGT and US$42 billion in the newbuilding market in 2021, their order volume and order value are expected to fall 23.5 percent and 19.0 percent, respectively, to 13 million CGT and US$34 billion.

The report explained that maritime fares soared three to four times in 2020, leading to a sharp increase in container ship orders in 2021. It added that due to increased supply, container ship orders will naturally decline next year, which will have an impact on the total number of orders.

From January to September 2021, orders for container ships 12,000 TEUs or larger stood at 10.75 million CGT (180 vessels), up 1,504 percent from 670,000 CGT (nine vessels) in 2020. On Oct. 22, the Shanghai Container Freight Index (SCFI), which represents levels of fares for maritime transport routes, also recorded 4,583.39, more than triple from the same period of 2020.

In addition, the report analyzed that despite environmental regulations that the International Maritime Organization (IMO) will begin to execute in earnest in 2023, new investments in ships other than container ships and liquefied petroleum gas (LPG) carriers did not yet begin, so this fact might pull down overall shipbuilding orders next year.

Source: Business Korea

Related Posts

Video

Finance & Economy
Shipping News
Ports

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...