K-Chosun, Last Year's Orders Reach 17.44 Million CGT, 'Largest in 8 Years'... Leading in High-Value and Eco-Friendly Ships

2021 Order Volume 17.44 Million CGT, Order Amount 43 Billion USD... Capturing 37% and 43% of Global Market Share

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last year, the domestic shipbuilding industry secured 17.44 million CGT, which is well over one-third of the global order volume, achieving the highest performance in eight years since 2013. In particular, it is analyzed that the industry strengthened its leadership by dominating the high value-added and eco-friendly ship markets, which are expected to grow further in the future.

The Ministry of Trade, Industry and Energy announced on the 5th that Korea's shipbuilding industry accounted for 37% of the global market in order volume and 43% in order value, with 17.44 million CGT and 43 billion dollars respectively in 2021.

This order performance represents an increase of 112% compared to 8.23 million CGT in 2020 and 85% compared to 9.58 million CGT in 2019, just before the COVID-19 outbreak, reaching the highest level since 18.45 million CGT in 2013. The share of domestic orders in global order volume has steadily risen from 31.2% in 2019 and 34.1% in 2020 to 37.1% in 2021. Among the total orders, high value-added ships accounted for 12.52 million CGT or 72%, and eco-friendly ships accounted for 10.88 million CGT or 62%.

In particular, for high value-added ships, Korea secured 12.52 million CGT (191 vessels), which is 65% of the global order volume of 19.40 million CGT (302 vessels), achieving the number one market share. By ship type, Korea secured 89.3% of the global orders for large liquefied natural gas (LNG) carriers, 88% of VLCCs, and 47.6% of large container ships (over 12,000 TEU).

The domestic share of eco-friendly ship orders also continued to rise, reaching 57.4% in 2019, 62.2% in 2020, and 63.6% in 2021, achieving the top position worldwide. By fuel type, about 82.4% of Korea’s total eco-friendly ship orders are LNG-powered vessels, followed by liquefied petroleum gas (LPG)-powered ships at 11.6%, and methanol-powered ships at 4.5%.

An official from the Ministry of Trade, Industry and Energy stated, "The domestic shipbuilding industry’s highest order performance since 2013 last year shows that the previously stagnant industry is recovering and making a leap forward. In particular, high value-added and eco-friendly ships have become Korea’s main ship types."

Accordingly, the domestic shipbuilding big three significantly exceeded their target order amounts last year, focusing on LNG and LPG carriers, container ships, and tankers. Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries achieved order results of 22.8 billion dollars, exceeding their targets by 53%. Samsung Heavy Industries exceeded its target by 34% with 12.2 billion dollars, and Daewoo Shipbuilding & Marine Engineering exceeded by 40% with 10.8 billion dollars. Four medium-sized shipbuilders?Daehan Shipbuilding, Daesun Shipbuilding, K Shipbuilding, and HJ Heavy Industries (formerly Hanjin Heavy Industries)?also doubled their order performance compared to the previous year.

Last year, domestic ship exports increased by 19% from the previous year to 22.9 billion dollars, achieving the highest performance in four years since 2017.

However, global orders this year are expected to reach 36 million CGT, a 23.3% decrease compared to 46.96 million CGT last year. This is because most of the deferred demand due to COVID-19 was resolved last year, and shipyards face slot limitations due to increased order contracts this year, while shipowners are expected to delay orders due to rising ship prices.

Meanwhile, the Ministry of Trade, Industry and Energy, together with the Ministry of Oceans and Fisheries, published a white paper titled "The Re-leap of K-Shipbuilding and Shipping, a Hopeful Future through Win-Win Cooperation." It systematically documents the efforts to overcome the crisis and the process of win-win cooperation in the shipbuilding and shipping industries, which are recovering from recent stagnation.

This content was produced with the assistance of AI translation services.