Marine Link
Sunday, January 21, 2018

Korean Yard News

Shipowners Prefer Korean Rather Than Chinese Shipyards

According to a Gibson market report, quoted by KOMEC-Korea, as many as half of China's shipbuilders are likely to go out of business over the next two to three years. Korean yards have taken 55% of all new tanker orders placed so far this year. As demand for Eco ships or more specialised tonnage takes off, it is Korean yards which are likely to benefit the most. The report adds that currently China’s slice of the global tanker orderbook represents 38%, still some way behind South Korea with 47%. However, Korean shipbuilders have the technical edge and are therefore able to build higher quality vessels to the higher specifications required by owners today. Korean yards have taken 55% of all new tanker orders placed so far this year.

EU Monitors Market

The world shipbuilding market continues to face serious difficulties, while certain South Korean yards are still pricing ships below cost, notes the European Commission's latest (fifth) report on world shipbuilding, adopted today. World ship prices are still being depressed by excess supply, due to past expansion of yards mainly in Korea. New orders did reach an historic high in 2000, bringing a brief price recovery, but then sank substantially in 2001, taking prices with them, in the wake of US recession and the effects of the September 11 terrorist attacks on demand for sea trade and cruises respectively. Declining orders for container ships and cruise ships cut the market shares of both Korea and the EU, which are particularly strong in these segments.

S. Korea Eyes Cruise Building Market

Han Jong-chan assembles the massive blocks used to build ships at one of South Korea's huge and successful shipbuilding yards and has never been happier. Han has worked Daewoo Shipbuilding & Marine Engineering's famed shipyard on remote Koje island here for 18 of his 38 years, recently on night shifts as hefty orders force workers to man giant cranes and welding shops around the clock. Despite a troubled past, a looming dispute with the European Union over subsidies and growing competition from China, the future is looking rosy -- particularly with Korean yards eyeing the potentially lucrative market for cruise ships. The port of Okpo is synonymous with the Daewoo Group and the efforts of its now disgraced founder…

Shipbuilding – China Stuggles to Keep Pace with Korean Yards

South Korean yards took market share from Chinese yards in 2011 according to a recent report in the Danish Ship Finance Review. South Korea secured new orders of 13.5 million cgt Korean yards secured almost half of the contracted capacity (13.5 million cgt). Container and Tanker orders accounted for 85% (6 million cgt and 5 million cgt respectively). South Korea therefore maintains the position as the leading global builder of Containers and Tankers. But South Korean yards also added to their market position in the specialized tonnages. For example, orders of 1 million cgt were placed for Drillships in 2011. European owners signed 60% of the orders placed in South Korea during 2011. The order cover dropped on average 14% to 28 months in 2011.

SCI May Turn to Chinese Shipyards

Shipping Corporation of India mayturn to Chinese shipyards for acquisitions of its future tonnage covering tankers, tugs and bulk carriers. The major shipbuilders, mostly located in Korea, are, it is learnt, unable to accept new orders for deliveries in the next few years as their order books are full for the foreseeable future. Besides, the Korean yards have stopped building bulk carriers. SCI, it might be noted, has already placed orders with three Korean yards for acquisitions of various types of vessels two 4,400-TEU container vessels with Hyundai, six large range product tankers with STX and two VLCCs with Daewoo. SCI Forbes Ltd…

EU Blames South Korean Yards For Low Prices

The European Union on Wednesday blamed low prices offered by South Korean shipyards for the depression in the world shipbuilding market and accused Korea of pricing ships at below cost. A report by the EU's executive Commission found the world shipbuilding market continued to face serious difficulties. Repeating charges it has leveled often in the past, the Commission said its detailed cost investigations "continue to indicate that Korean yards are still taking orders at prices which are not covering all costs". South Korea is the biggest shipbuilder in the world. Its shipyards took more than 40 percent of all new orders in the first eight months of this year…

STX Shipbuilding to Expand

Bloomberg reported that STX Shipbuilding Co is planning to raise capacity at its South Korean yards by 20% in 2008 after adding a second floating dock to meet demand for new vessels. Mr Kang Ssang Won senior VP of STX Shipbuilding told reporters that it would spend KRW 142.6 billion (USD 135 million) to build the new dock on the south coast the yards in Busan and Jinhae will be able to handle 60 ships as compared with 50 in 2007. (Source: http://steelguru.com)

Bergesen Orders Gas Carriers

Bergesen has entered into an agreement with the Korean yard Daewoo Shipbuilding and Marine Engineering Company (DSME) for construction of two fully refrigerated LPG/Ammonia carriers of 38,000 cbm. The vessels will be delivered in the fourth quarter of 2005 and fourth quarter of 2006. The contract price is $41.4 million per vessel. The contract will contribute to a renewal of Bergesen's MGC-fleet. Two old vessels were sold for scrap in 2002/2003.

LR Asia Completes Safety Case for Dual-Fuel LNG

Lloyd’s Register Asia has completed the first safety case in Korea for dual-fuel electric propulsion in association with Daewoo Shipbuilding and Marine Engineering (DSME) and Wärtsilä. The system is for the new large LNG tanker designs of 200,000 cu. m. and above being put forward by Korean yards. Lloyd’s Register Asia has worked with DSME and Wärtsilä to help to ensure that the technology is properly qualified for installation onboard the next generation of LNG tankers.

EU Points Finger At South Korea

The European Union has accused South Korean shipyards of distorting the international market by pricing ships below cost, but put off a decision on whether to launch a trade complaint against Seoul. In its latest report on world shipbuilding, the EU's executive Commission said significant over-capacities in South Korean shipyards, combined with a need to generate new orders to assure sufficient cash flow, prevented a recovery of shipbuilding prices. None of the South Korean shipbuilding contracts it had examined had been priced at a level that covered operating costs, profits and debt repayments, the Commission said. South Korean yards incurred losses averaging 14 percent on these orders, it said.

Selectivity, Backlog Play Major Roles In Low Korean Shipbuilding Orders

South Korean shipyards had won 1.7 million in compensated gross tons (CGTs) of shipbuilding orders during the first quarter of this year, down 32.6 percent from a year ago, the Korea Shipbuilders' Association said on Wednesday. It said in a statement ship construction by Korean companies in the January-March period was 1.85 million CGTs, up 24.1 percent from a year earlier. Shipbuilding orders fell as Korean yards, which were already fully booked for two and a half years, turned more selective in picking up new orders. Order backlog of Korean shipbuilders was 16.3 million CGTs at the end of March, against 13.4 million CGTs a year earlier, the association said.

Trade Officials To Discuss Korean Shipbuilding Disputes

European Union and South Korean trade officials will meet next week in Seoul to resolve a dispute over alleged shipbuilding subsidies by Korean yards. "Working-level officials from the EU and Korea will discuss the hottest trade issue between the two parties from May 28-30 in Seoul," said Seoul's Commerce Ministry in a statement. Earlier in the month, European Trade Commissioner Pascal Lamy met South Korean Commerce Minister Hwang Doo-Yun to discuss the EU executive's threat to start a WTO (World Trade Organization) dispute against Seoul unless a deal could be reached by June 30. The EU argues that South Korea has granted substantial subsidies to its shipyards, contravening the WTO's 1994 Subsidies Agreement.

RS Exhibits at Kormarine 2013

Pavel Shikhov

Russian Maritime Register of Shipping (RS) will participate in Kormarine 2013 in Busan, Republic of Korea, one of the largest international exhibitions of maritime industry. On 22-25 October the foremost exhibition of the maritime industry in Asia will gather leaders of shipbuilding industry. RS will undertake a scaled-up participation in this event. The first RS office opened in Korea in 1996 was originally oriented to render its assistance to ships in service in the first place.

Herbert-ABS Opens Korea Office

Herbert-ABS Software Solutions LLC, a company in marine regulatory, load management, salvage and ship design software, said it has opened an office in Busan to reinforce support for Korean-based shipyards, as well as improve the quality of service to this key market. Herbert-ABS also has an office in Shanghai and earlier this year expanded into Singapore. The Busan office will be led by Arnold (Woo-Sung) Cho, Marketing and Sales Manager, whose primary focus will be to strengthen relationships with the Korean yards. Cho's activities will also consist of representing Herbert-ABS at industry conferences, to include Gastech, 24-27 March in South Korea at stand G360.

South Korean Yards Expected To Nab 75 Percent of LNG Orders

South Korean shipyards are expected to win about 75 percent of an estimated 48 orders for liquefied natural gas (LNG) carriers this year, industry officials said on Wednesday. "There are virtually no rivals to compete with Korean shipbuilders in making LNG carriers in terms of price and quality," said Yoo Jae-won, a spokesman for the Korea Shipbuilders' Association. Surging demand for environmentally friendly LNG was expected to raise the number of LNG carrier orders to around 48 this year from only 14 last year. "Korean shipbuilders are poised and look likely to grab most of the orders," Yoo said. Daewoo Shipbuilding and Marine Engineering, the world's second-ranked yard, said its LNG orders totalled 10 ships worth $1.7 billion so far this year, with options for 12 more.

Report: Need for More Smaller Korean Yards Seen

According to Ariang News, several major Korean shipyards dominate the world shipbuilding market, but it looks like the industry could use more smaller players. Only 14 Korean shipyards made it to the world's top 100 shipbuilders. The list was compiled by the London-based market researcher Clarkson based on orders. The figure compares with 28 Japanese and 27 Chinese shipyards that made the cut. Analysts say this is because Korean shipbuilders have focused mainly on building large-scale shipyards and need to develop more small- and medium-sized shipyards to establish a more balanced and stable industry. Source: Arirang News

S Korea Wins Half of World’s Shipbuilding Orders

South Korean yards won half of the world’s shipbuilding orders in the first half of this year, the News International reported. The Ministry of Knowledge Economy and the shipbuilding industry said yards secured orders for 12.40 million compensated gross tons, or 50.6 per cent of the world’s total. It said overall global demand fell sharply compared to 2007 but the proportion of orders won by local companies increased. In 2007, secured 38.9 percent of all orders placed against 37.3 percent for its main rival . In the first half, ’s share dipped to 34.3 percent. Shipbuilding is one of the country’s top five export industries with the total value of overseas sales reaching $27.68 billion last year.

Qatargas Gains Two New LNG Vessels

Two new LNG vessels that will join the Qatargas fleet have been handed over to the owners’ consortium by Daewoo Shipbuilding & Marine Engineering Ltd (DSME) at its ship building yard in the Geoje Island in South Korea. The vessels Al Ruwais and Al Safliya will now proceed with bunkering and leave South Korea in the next few days. The first cargo will be delivered to Japan using one of these vessels before the year end. Two more vessels are expected to be delivered from other South Korean yards this month. Qatargas has chartered the ships from the vessel owners under a consortium of Nakilat, Pronav and some German investment companies. [Source: http://www.gulf-times.com]

More NACOS Orders For SAM Electronics

radars, Ecdis and other proprietary sensors. Worldwide sales of systems for installation aboard commercial and passenger vessels as well as retrofits now approach 750 configurations. The new commissionings include NACOS 45-4 units for six 30,000 gt product tankers being built by Trogir Brodogradiliste, Croatia for delivery to Laurin Maritime (America) Inc in 2002-4. Meanwhile, NACOS 55-4 systems are to be installed on a series of eight container newbuildings under construction at Daewoo¹s Okpo yard on behalf of Norddeutsche Reederei and Mediterranean Shipping Company for completion in 2003-4. Similar 55-4 systems have also been commissioned for two $350 m 42…

Orders at South Korean Yards Down 36.9 Percent

South Korean shipyards won shipbuilding orders of 4.2 million compensated gross tons (CGTs) during the first half of this year, down 36.9 percent from a year ago, the Commerce Ministry said on Wednesday. The orders in dollar terms amounted to $6.8 billion in the period, down 25.4 percent from the previous year, the ministry said in a statement. CGT shows a country's shipbuilding capacity and factors in manpower and added value. Ship-related exports in the first half of 2001 rose a record 44.1 percent to $5.7 billion, helped by exports of steel structures for oil drilling in the sea, it said.

Japan Seeks Share of LNG Carrier Shipbuilding Market

LNG Carrier by Kawasaki Heavy Industries

Japanese market players ramp up their design efforts for fuel-efficient engines to challenge Korean yards as demand for super-cooled fuel is set to soar, says a report in South China Morning Post. A total of 50 to 60 LNG ships annually are forecast to be delivered globally in 2017 and 2018, aided by US shale export projects, according to an estimate by analyst Masanori Wakae at Mizuho Securities. Of the total, 12 to 15 ships may be delivered by Japanese suppliers, with the remainder likely to be supplied by the Koreans.

Samsung Heavy Expects Fewer Ship Orders

Samsung Heavy Industries said that orders this year for its vessels and offshore platforms may fall as much as 21 percent as demand weakens from three consecutive years of records, Bloomberg reported. New contracts may drop to between $10 billion and $12 billion from an all- time high of $12.6 billion last year, reports indicated. Even the low end would be the second- highest level of new business in the company's history. Samsung Heavy and other yards in South Korea, home to the world's largest shipyards, took almost half of the orders last year in the world's $100 billion ship industry, as increased demand for fuel and global trade prompted shipowners to expand their fleets. Backlogs are at their highest ever, representing more than three years of work for the South Korean shipbuilders.

STX Gets First Order for LNG Tanker

STX Shipbuilding Co., received its first order to build a liquefied natural gas tanker. The shares climbed to a record. Spain's Empresa Naviera Elcano SA agreed to buy the vessel for $225m, with an option to purchase three more LNG tankers, which may increase the value of the contract to $1 billion, the Jinhae, South Korea-based company said in a regulatory filing yesterday. Hyundai Heavy Industries Co. and other South Korean yards took almost half of last year's orders in the $100 billion global ship industry, as demand for fuel and global trade encouraged shipping companies to expand their fleet. STX Shipbuilding said it will focus on more expensive vessels that carry energy products including oil and liquefied natural gas. (Sourc: Bloomberg)

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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