Thomas G. Ernst & Co.


07.02.2014

Ordering Boom only in Korea

Crisis past, or not, but ships ordered as if there will be an explosion of demand tomorrow.

Order boom in Korean Shipbuilding only - not talking about China and the rest.

For the record, the performance of the number yards of the Korea Offshore & Shipbuilding Association (KOSHIPA), the new name of the Korea Shipbuilders’ Association, in the year 2013:
Orders received: 407 ships 13.69 mill CGT – up by 90.9 % from 2012
Ships built: 301 ships 10.04 mill CGT – down by 14.4 % from 2012
Order backlog: 877 ships 32.27 mill CGT – up by 20.6 % from 2012

The members of KOSHIPA are Hyundai, Daewoo, Samsung, Hanjin, Hyundai-Samho, STX, Hyundai-Mipo, Daesun and Shin-A. The building capability of the KOSHIPA member yards is normally abt 90% of whole Korea’s.

The newbuilding orders have increased by 90% from the year before but this figure is only abt 60% of that of year 2007 when the market was at its peak. Production has, however, been reduced, which means, yards build ships at proper building berths only. They have stopped building ships on land.

Written by CH Koh/O-Sung
TGE