Korea's Ship Building Orders Dip to 6-Year Low

Maritime Activity Reports, Inc.

December 4, 2015

Image: Hyundai Heavy Industries

Image: Hyundai Heavy Industries

 South Korean shipbuilders' new orders in November fell to the lowest level in six years amid woes over their growing losses, Yonhap reports.

Meanwhile, Chinese rivals scooped up a large slice of contracts, according to the data compiled by global researcher Clarkson Research Services.
South Korean shipyards bagged new orders totaling 79,834 compensated gross tons (CGTs) last month, the lowest since September 2009.
But, Chinese shipbuilders received 1.46 million CGTs worth of new orders last month, which accounted for some 80 percent of the total orders placed around the globe, the data showed.
Japan came in third with 50,000 CGTs worth of new orders last month.
The industry’s top three companies by revenue— Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co., which together sit atop South Korea’s $85 billion shipbuilding sector—have borne the brunt of a slump in recent years.
In the first eleven months of the year, South Korean shipbuilders secured new shipbuilding orders totaling 9.92 million CGTs, followed by China with 8.82 million CGTs and Japan with 6.77 million CGTs, the data showed.
It has been found that the three largest Korean shipbuilders achieved an average of 55 percent of their contract attainment goals for this year until the end of last month. Under the circumstances, the three shipbuilders are likely to close this year’s business with some bitterness, reports BusinessKorea.
Specifically, Hyundai Heavy Industries made US$11.6 billion, equivalent to 61 percent of its goal by signing contracts for 97 ships. The figures are US$10 billion, 67 percent, 49 ships for Samsung Heavy Industries and US$4.5 billion and 35 percent for Daewoo Shipbuilding & Marine Engineering. 
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