Korean Shipbuilding's Orders in 8 Years Peak Last Year... Sweeping High-Value 'LNG' Contracts
Accounting for 40% of Global Orders Last Year, Ranked 2nd Worldwide
Freight Rate 154.18... Highest Since May 2009
[Asia Economy Reporter Hwang Yoon-joo] The Korean shipbuilding industry has recorded its highest order volume in eight years. In particular, it secured 9 out of 10 orders for liquefied natural gas (LNG) vessels, reaffirming its competitiveness in the high value-added ship sector.
According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, the global ship order volume in 2021 was 46.64 million CGT (Compensated Gross Tonnage), a 95% increase compared to the previous year. This is the largest scale in eight years since 62.06 million CGT in 2013.
Korea secured 17.44 million CGT, a 101% increase from the previous year, marking the largest order volume in eight years since 18.45 million CGT in 2013. Its share of the total order volume was recorded at 37.4%.
In particular, Korea showed strength in LNG carriers, whose orders have increased due to the International Maritime Organization (IMO) tightening environmental regulations. Out of 78 LNG carrier orders, Korea secured 68, accounting for an 87% share. It also secured 49% of orders for large container ships of 12,000 TEU (1 TEU equals one 6-meter container) or more.
China's orders amounted to 22.86 million CGT, accounting for 49% of total orders, while Japan ranked third with 4.13 million CGT in orders.
The upward trend in ship prices also continues. In December last year, the Clarkson Newbuilding Price Index rose by 0.56 points from the previous month to 154.18. It increased by 27 points compared to the beginning of last year, maintaining a rising trend for 13 consecutive months. This is the highest level since May 2009, when it was 156.58.
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As of the end of last year, the global order backlog stood at 90.20 million CGT, down 0.23 million CGT from the end of the previous month. By country, China had the largest backlog at 37.09 million CGT, followed by Korea with 29.39 million CGT and Japan with 9.23 million CGT. Korea's order backlog increased by 0.16 million CGT compared to the end of the previous month and by 6.44 million CGT compared to the same period last year.
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