Sunday, May 28, 2023
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

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...