South Korea's Shipyards May Raise Prices

Wednesday, June 21, 2006
Bloomberg has reported that South Korea's seven shipbuilders, which delivered 38 percent of the world's vessels in 2005, said they may raise the prices of new ships to take advantage of record orders and protect their profits from rising costs. Carriers of containers, oil and minerals may cost about 5 percent more this year, said Hyundai Samho Heavy Industries company officials. Higher prices protect shipbuilders' earnings from the Korean won's gains against the U.S. dollar and shield them from steel costs that have risen 70 percent since 2003. A third year of rising ship prices add to the costs of Taiwan's Evergreen Marine Corp. and other shipping lines which carry an estimated 90 percent of global trade.

The price of a supertanker that can hold 2 million barrels of oil rose 4 percent to about $125m in December, the Korea Shipbuilders Association said. The price of a vessel that can carry 3,500 20-foot containers increased 2.8 percent to $54 million from last year.

Hyundai Heavy Industries Co. and other South Korean shipbuilders received a record $12 billion in new contracts in the first quarter as fleet owners rushed to order vessels before a United Nations rule came into effect in April banning single- hull ships by 2010.

South Korean shipyards had 38.5 percent of the world's back orders in the first quarter, enough to stay busy until 2009. Shipping lines putting in orders today will have to wait until 2010 for delivery as backlogs stand at a record 1,031 vessels.

Samsung Heavy received a $1.5b order for 14 container ships from three companies including Panama's Naviera Daniela SA and Greece's Danaos Shipping Co. on June 7. The order included so-called post- Panamax vessels that can transport more than 7,000 20-foot cargo boxes each. Source: Bloomberg


Shipbuilding

Abu Dhabi Ship Building Commissions First Floating Dock

Abu Dhabi Ship Building PJSC (ADSB) has commissioned its first floating drydock located in Mina Zayed as the company looks to expand its commercial service offering.

NAT Names 2 New Tankers in South Korea

wo new tankers, Nordic Star and Nordic Space, were named August 24 for owner Nordic American Tankers Limited (NAT).   NAT founder and chairman Herbjørn Hansson was present at the naming ceremony,

Japanese Yards Mull Shipbuilding Alliance

Four major Japanese shipbuilders are in discussions to form an alliance in hopes of riding out the industry slump.   Mitsubishi Heavy Industries, Ltd. (MHI) announced

Environmental

Doing Business Differently to Meet Sustainability Targets: DNV GL

Pressure is mounting on the global oil and gas industry to reduce environmental footprint at the same time as the industry is under significant cost pressure.    Since

GoM Operators Evacuating Ahead of Storm

Offshore oil and gas operators in the Gulf of Mexico are evacuating platforms and rigs in the path of Tropical Depression No. 9.   The Bureau of Safety and Environmental

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0765 sec (13 req/sec)