Korean Shipbuilding Hits 6-Year High in Order Backlog... China Takes Top Spot in April Orders

Clarkson Research April Market Report Announcement

A liquefied natural gas (LNG) carrier built by Samsung Heavy Industries. (Photo by Samsung Heavy Industries)

[Asia Economy Reporter Moon Chaeseok] The order backlog of the Korean shipbuilding industry reached 688 vessels and 32.68 million CGT (Compensated Gross Tonnage), marking the highest record in six years since April 2016. However, last month's order volume was overtaken by China.

According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, global ship orders last month decreased by 36% from the previous month to 2.51 million CGT (71 vessels). Among these, China secured 1.54 million CGT (45 vessels), and Korea secured 820,000 CGT (16 vessels). Although Korea lagged behind China in last month's orders, the cumulative total from January to April showed Korea leading with 5.81 million CGT (120 vessels, 45.9%) compared to China's 5.80 million CGT (197 vessels, 45.8%).

At the end of last month, the global order backlog increased by 700,000 CGT (1%) from the previous month to 95.95 million CGT. By country, China accounted for 40.44 million CGT (1,703 vessels, 42%), Korea 32.68 million CGT (688 vessels, 34%), and Japan 9.28 million CGT (477 vessels, 10%). Compared to the same period last year, Korea's backlog increased by 7.47 million CGT (30%), China by 6.67 million CGT (20%), while Japan's decreased by 1.61 million CGT (15%). Notably, Korea's order backlog was at its highest in six years since April 2016 (692 vessels).

In particular, Korea's average order price per vessel last month was $143 million (approximately 182.7 billion KRW), 66% higher than China's $86 million (approximately 109.9 billion KRW). China mainly focused on small container ships of 1,800 TEU (1 TEU = 20-foot container), PCC (Pure Car Carriers), small bulk carriers, and chemical tankers, whereas Korea secured high value-added vessels such as liquefied natural gas (LNG) carriers and medium to large container ships of 8,000 TEU class.

Last month, the Clarkson newbuilding price index slightly rose to 157.78 from March. During the same period, ship prices by type were as follows: LNG carriers (174,000㎥) increased from $222 million to $224 million (approximately 283.6 billion to 286.2 billion KRW); container ships (13,000?14,000 TEU) from $149.5 million to $152.5 million (approximately 191.0 billion to 194.8 billion KRW); ultra-large crude carriers from $115 million to $116 million (approximately 146.9 billion to 148.2 billion KRW); S-max crude carriers from $77 million to $78 million (approximately 98.4 billion to 99.7 billion KRW); and A-max crude carriers from $60 million to $60.5 million (approximately 76.7 billion to 77.3 billion KRW).

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