S. Korea’s Shipbuilding Order Backlog Hits 12-year High in H1

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Shipbuilding exports are taking the lead in Korea’s exports in the first half of the year. During this span, Korea’s exports rose 11.9 percent year on year. The Korean shipbuilding industry secured four years’ worth of work through the end of the first half of this year. This is the largest order backlog in 12 years. The global ship price index is also at its highest since 2008.

The Korean Ministry of Trade, Industry and Energy (MOTIE) said that Korea’s ship exports reached US$9.22 billion in the first half of this year, up 11.9 percent from the same period last year. Exports rose as increased orders from 2021 led to production and a ship price hike took effect.

First-half orders to Korean shipbuilders accounted for 29 percent of total global orders. Korea shipbuilders kept its top spots in orders for high-value vessels and eco-friendly vessels in the world, accounting for 61 percent and 50 percent of their global orders, respectively. LNG carrier order to them, in particular, accounted for 87 percent of the global LNG carrier orders.

Korean shipbuilders’ order backlog is at a 12-year high of 38.80 million compensated gross tonnage (CGT), up from 39.88 million CGT in 2011. They now have four years’ worth of work. At 170.9, the ship index is at its highest level since 178.0 in 2008. The price of an LNG carrier in particular reached a record high of US$260 million.

The Korean shipbuilding industry landed 44 percent of the total global orders in July, overtaking the Chinese shipbuilding industry to become the world’s top monthly shipbuilding order taker for the first time in five months since February. Including July’s results, Korean shipbuilders’ global market share is 30 percent in new shipbuilding orders, 59 percent in valued-added vessels, and 51 percent in eco-friendly ships.

Source: Business Korea

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