Full order books

South Korean shipbuilders won fewer orders in the fourth quarter of 2003 simply because their dockyards were full. Orders for container ships, oil tankers and other vessels fell 1.5 percent to 3.59 million compensated gross tons, a measure of building time and manpower used per ton, in the October-to- December period.

“South Korean shipbuilders are becoming more selective in the orders they take, because they’ve already won so many to keep their dockyards busy for three years,” the South Korean ministry said. “Demand for new ships will probably weaken this year after a sharp increase in orders in 2003.”

For the full year, orders more than doubled to 16.75 million compensated gross tons, the highest volume since 1973 thanks to increased global trade. The demand prompted Asian shippers to raise cargo rates on U.S. and European routes. Stricter safety rules on old vessels after a November 2002 also boosted orders.

Shipping companies worldwide last year placed an estimated total of 41 million compensated gross tons of shipbuilding orders.

It expected this year’s orders for South Korean shipbuilders to reach about 7.5 million compensated gross tons, with exports of $12 billion.

Container ship orders accounted for 43 percent of contracts received by South Korean shipbuilders for all of last year. Tankers accounted for 22.3 percent and liquefied natural-gas carriers 2.6 percent.

A total of 7.27 million compensated gross tons, or 223 ships, were delivered at the end of 2003, 6.5 percent more than a year earlier. Exports rose 3.6 percent from a year ago to a record $11.06 billion in 2003, accounting for 5.7 percent of the country’s total overseas shipments.

South Korean shipbuilders had a record order-backlog of 26.41 million compensated gross tons, or 738 vessels worth $37.96 billion, at the end of last year, 55 percent more than a year earlier. The orders will keep dockyards busy until 2006, the ministry said.