Korea consolidates its lead

Korean shipbuilders will maintain their lead in terms of orders this year, outpacing Japanese rivals for the third year running. Market researcher Clarkson Research Studies said that Korea’s total amount of ship orders in the first 11 months of this year amounted to 13.9 million CGT (compensated gross tonnage), or about 39% of the global market (35.5 million CGT). This outstrips the combined orders won by Japan (5.9 million CGT) and the whole of Europe (7.4 million CGT).

Last year, Korea landed orders of 17 million CGT and Japan 13.1 CGT. Korea is expected to lead the global market for some time to come as its shipbuilders have secured enough orders for the next three years and 10 months on average, which in turn will give them the choice to build high value-added vessels in the future. Coupled with surging demand for large vessels like LNG carriers, container ships and FPSOs due to record-high oil prices, the prospects for the local industry are bright, said Lee Byung-ho, vice chairman of the Korea Shipbuilder’s Association.

In comparison, Japanese shipbuilders mainly received orders for bulk carriers, according to market experts. Japanese shipbuilders also won half of their orders from domestic firms, while South Korean yards are positioned to meet the demands of buyers from all around the world.