Japan ranks top in order intake

According to the Korea Shipbuilders’ Association (Koshipa), South Korean shipbuilders have received new ship orders of 171,000 cgt in the first quarter of 2009, placing it 2nd in market share after Japan. Koshipa released a report entitled “Current Situations and Prospects of Shipbuilding Industry” which said Chinese shipyards secured new orders of 143,000 cgt while Japanese won 447,000 cgt in the first three months of 2009.

Japan took the largest market share of 40.6% while South Korea and China occupy 15.5% and 13% respectively. South Korean shipbuilders have to date maintained the first place in terms of new orderbook with securing newbuilding orders of 10,459,000 cgt (market share of 36.2%) in 2000, 32,794,000 cgt (39.8%) in 2007 and 15,833,000 cgt (38.3%) in 2008.

Koshipa said, “South Korea and China’s dependence on orders from overseas is high while 60% to 70% of Japan’s newbuilding order receipts come from compatriot owners, hence Japanese shipyards were less exposed to global newbuilding orders drought and order cancellations.”

Meanwhile, newbuilding inquiries are said to be increasing gradually from cash-rich Middle East state-run shipowners including KOTC, and BHP Billiton is also said to be in talks for building VLOC recently. In addition, new orders are expected to be placed in the offshore sector in the second half of this year such as Shell’s massive LNG-FPSO, Gorgon Project’s LNG plant, Petrobras’ drillship and ExxonMobil’s LNG carrier.