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The dock is full! Orders skyrocketed! South Korea's shipbuilding industry returns to prosperity

The dock is full! Orders skyrocketed! South Korea's shipbuilding industry returns to prosperity

Column:Industry News    Date:2021/5/17 11:04:57    Viewed:

With the continuous increase in the number of orders for new ships, the Korean shipbuilding industry seems to be ushering in the long-lost prosperity: the docks are full, the workers are working overtime...At the same time, the Korean shipbuilding companies are also full of longing for the future. They not only have a sense of relief that they have finally climbed out of the long dark trough, but they are also full of confidence in their technological competitiveness and development prospects in the global shipbuilding market.


14 shipyards are operating at full capacity, and the shipyard has a long-lost busy scene


Hyundai Samho Heavy Industries, located in Yeongam County, Jeollanam-do, is one of the three backbone shipyards under the Hyundai Heavy Industries Group. It covers an area of 700,000 pyeong (approximately 2.31 million square meters) and has 3 docks. In recent years, due to the sluggish shipbuilding industry and the impact of the new crown pneumonia epidemic, it is rare for all three docks to be opened.


Now the situation has changed. At present, in these three docks, 8 ships including LNG-powered ultra-large container ships, LPG ships, and bulk carriers are undergoing construction at the same time.


The situation of the other two backbone shipyards of Hyundai Heavy Industries in Ulsan is almost the same. The seven docks of Hyundai Heavy Industries and the four docks of Hyundai Mipo Shipbuilding are currently operating at full capacity.


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South Korean media pointed out that since the second half of last year, with the rapid economic recovery of the United States and China, global orders for new ships have increased significantly. Korean shipping companies seized the opportunity and successively accepted a large number of orders. As soon as the dock became vacant, a steady stream of newly built ships would be docked.


Han Zhengdong, executive officer of Hyundai Sanhu Heavy Industry, said: “It seems that all the company’s three docks have been opened a few years ago. Now it feels like you just lifted your knees from the floor and left the valley.”


According to statistics from the Ministry of Trade, Industry and Energy, South Korean shipping companies received 5.32 million CGT in the first quarter of this year, an increase of 868% year-on-year; the total value of new orders received was US$11.9 billion, an increase of 753% year-on-year. The number of orders received in the first quarter of this year was the highest level in the first quarter of the Korean shipbuilding industry in 13 years since the booming of the shipbuilding market in 2006-2008. All shipping companies have accumulated hand-held orders equivalent to two years of work.


At the end of last year, orders were received at the beginning of this year, and the three major shipping companies had enough supplies


The South Korean shipbuilding industry has regained its prosperity due to the large number of orders received in the "Order Rally" at the end of last year and the first quarter of this year.


In fact, due to the impact of the new crown pneumonia epidemic, South Korean shipbuilding companies experienced severe "order depletion" in the first half of 2020, and the number of orders for new ships lags far behind China. Entering the second half of the year, especially after entering the fourth quarter, South Korean shipping companies have gradually narrowed the gap with China and finally achieved overtake by undertaking large-scale LNG ships, VLCCs, and ultra-large container ships and other high value-added ships.


In the first half of 2020, China received a total of 3.51 million CGT orders for new ships, far exceeding South Korea's 1.18 million CGT orders. In the second half of the year, South Korea received 7.01 million CGT orders and China received 4.42 million CGT orders. Especially in December, the total number of orders received by Korean shipping companies was 285 CGT, accounting for 73% of the total global orders of 3.92 million CGT that month. From this point of view, South Korean shipping companies have great stamina.


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Especially in the competition for orders for high value-added ships, South Korea's three major shipping companies Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding have completely overwhelmed China. At the end of last year, 21 large LNG ships of 174,000 cubic meters and 6 VLCCs ordered globally were included in the South Korean shipbuilding industry. Among the orders for 16 large container ships above 12,000 TEU class, the South Korean shipbuilding industry has won 10 ships, accounting for 62.5%. In the whole year of last year, South Korea took orders for 36 out of 49 large-scale LNG ships, 35 out of 41 VLCCs, and 18 out of 28 Suez-type crude oil carriers.


According to data released by Clarkson at the beginning of this year, in 2020, global new ship orders will be 738 and 19.24 million revised gross tonnage (CGT). Among them, the total number of orders received by Korean shipping companies is 187 ships with 8.19 million CGT, accounting for 42.6%.


Since then, South Korea has occupied the top position in global new ship orders for three consecutive years since 2018.


After entering this year, South Korea's three major shipping companies continued the hurricane of receiving orders at the end of last year, continued to launch the "order rally", and swept more than half of the world's new ship orders in the first quarter. According to Clarkson's data, in the first quarter of this year, global new ship orders were 10.2 million CGT and 323 ships, of which South Korean shipping companies undertook 5.32 million CGT and 126 ships, accounting for 52%.


With the increase in the number of orders for new ships, the South Korean shipbuilding industry has rekindled confidence, believing that this year's order prospects are brighter and the future is worth looking forward to. Especially in the context of the continuous strengthening of the International Maritime Organization (IMO) new environmental protection regulations, South Korean shipbuilding companies will continue to maintain their high value-added and high-tech ship types based on higher technical strength than competing countries such as China and Japan. Competitive advantages.


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