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Korea’s ship order backlog thins to lowest in 13 years

Collected: 2016.09.07

Distributed: 2016.09.08

Source: Go Direct

The backlog at Korean shipyards, in their longest-ever drought of work, is quickly thinning to reach the lowest in nearly 13 years as local shipbuilders managed to draw just eight new orders as of August this year.

According to Clarkson Research Services on Wednesday, the number of ship orders that Korean shipbuilders obtained in August totaled eight vessels equivalent to 210,000 compensated gross tonnages (CGTs) while China obtained the most ship orders with 320,000 CGTs or 22 vessels. Japan followed Korea with 130,000 CGTs or three new vessel orders. The total number of ships ordered out worldwide increased to 880,000 CGTs or 41 vessels in August from 690,000 CGTs in the previous month.

CGT is an indicator of the amount of work that is necessary to build a given ship.

By company in Korea, Daewoo Shipbuilding & Marine Engineering Co. won two very large crude-oil carriers (VLCC) orders and Hyundai Samho Heavy Industries Co. obtained two VLCC orders. The remainder went to small-sized dockyards - Samkang M&T with three chemical product carriers and Kangnam Corp. with one petroleum product carrier.

Amid the dearth in new work, order backlog at Korean shipbuilders slipped to 23.31 million CGTs, lowest after 22.56 million CGTs in October, 2003.

As of the end of August, China’s order backlog stood at 35.70 million CGTs and Japan 21.96 million CGTs. The worldwide ship order backlog recorded 96.81 million CGTs as of the end of August and hit the fresh record low since it marked 96.57 million CGTs in late February in 2005.

By Park Yong-beom

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