Korea shipbuilding ahead of China

London-based market researcher Clarkson says in its latest report that Korea received new orders for 34 ships totalling 700,000 compensated gross tons (cgt) while China secured orders for 19 ships totalling 400,000 cgt in January and February. On an annual comparison Korea’s ship orders during the two months rose by 33 percent whereas China’s order intakes dropped by 65 percent compare to 2009.

Korea had been maintaining its position as the world’s number one shipbuilder for a decade up until last year when Chinese competitors took away the title by taking up a large portion of orders on low margin bulk carriers and smaller tankers thanks to the Chinese government’s strong support for its shipbuilding industry. In fact, new orders commissioned by Chinese shipping companies that year accounted for 26 percent of total orders worldwide which came to 276 new intakes for Chinese yards compared to Korea’s 121.

However, industry experts say it is highly likely that Korean shipbuilders with their advanced technology will sail ahead of their Chinese rivals this year as the global economy bounces back.