Korea Secures Half of Global Ship Orders Last Month... Surpasses China for the First Time in 4 Years

Record Orders from January to May Lead China for the First Time in 4 Years
Driven by LNG Carriers and Large Container Ship Orders

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Last month, domestic shipbuilders in Korea secured nearly half of the world's ship orders, reclaiming the top position globally. With ship prices rising significantly, especially for eco-friendly vessels, there is a growing sense of opportunity for improved performance.

According to Clarkson Research, a UK-based maritime market analysis firm, global ship orders in May totaled 2.5 million CGT (Compensated Gross Tonnage), a 17% decrease from the previous month, with 57 vessels ordered. Korea secured 1.2 million CGT across 20 vessels, capturing a 48% market share, surpassing China which recorded 840,000 CGT and 22 vessels, holding a 34% share.

In April, Korea had fallen behind China with a 38% market share after securing 1.15 million CGT, but regained first place thanks to orders for LNG carriers and large container ships.

From January to May this year, the cumulative global ship orders reached 16.25 million CGT. Korea's orders totaled 7.34 million CGT across 148 vessels, representing a 45% market share. China followed closely with 7.16 million CGT and 247 vessels, holding a 44% share. This marks the first time in four years since 2018 that Korea has led China in this period.

Meanwhile, although the ship price index continued its upward trend in May, the volume of orders declined. The Clarkson Newbuilding Price Index stood at 160.07 points, marking 18 consecutive months of increase and reaching its highest level since February 2009. Orders for large liquefied natural gas (LNG) carriers surged by 329% compared to the same period last year, while orders for large container ships, oil tankers, and bulk carriers all showed a downward trend.

At the end of May, the global order backlog increased by 650,000 CGT compared to the end of April, reaching 98.53 million CGT. By country, China led with 41.58 million CGT, followed by Korea with 36.5 million CGT, and Japan with 9.65 million CGT.

Compared to the same period last year, Korea's order backlog grew by 7.56 million CGT (29%), China’s by 6.91 million CGT (20%), while Japan's decreased by 1.36 million CGT (12%).

The Clarkson Newbuilding Price Index in May was 160.07 points, continuing its upward trend for 18 months since December 2020 and reaching the highest level in 13 years.

Meanwhile, compared to April, ship prices by type increased as follows: LNG carriers (17,4000m³ and above) rose from $224 million to $227 million; container ships (13,000?14,000 TEU) increased from $152.5 million to $154 million. Ultra-large oil tankers rose from $116 million to $117 million; S-max oil tankers from $78 million to $79 million; and A-max oil tankers from $60.5 million to $61.5 million. Ship prices increased across all vessel types.

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