Achieved the highest performance in the shipbuilding industry in 8 years… World’s No.

The LNG-powered large container ship of Hyundai Samho Heavy Industries. Provided by Hyundai Samho Heavy Industries

Last year, the domestic shipbuilding industry achieved the highest order performance in eight years. High value-added ships and eco-friendly ships each recorded the world’s first orders, leading the overall performance.

The Ministry of Trade, Industry and Energy announced on the 5th that shipbuilding orders in 2021 will be counted at 17.44 million CGT (standard-line equivalent tonnage), the highest in eight years since 2013 (18.45 million CGT).

This is an increase of 112% compared to 2020 (8.23 million CGT), and an 85% increase compared to 2019 (9.58 million CGT), both in scale and before the outbreak of COVID-19.

The Ministry of Trade, Industry and Energy evaluated that it shows that the domestic shipbuilding industry has emerged from a recession and is entering a phase of re-jumping.

Of the total global orders last year (46.96 million CGT), domestic orders accounted for 37.1%. The proportion of domestic orders is 31.2% in 2019 and 34.1% in 2020, and is increasing every year.

Provided by the Ministry of Trade, Industry and Energy

Provided by the Ministry of Trade, Industry and Energy

The top contributors to the performance are high value-added ships and eco-friendly ships. High value-added ships (12.52 million CGT) accounted for 72% of the total orders and 62% of eco-friendly ships (1.88 million CGT), reaffirming that high value-added and eco-friendly ships are Korea’s main ship types.

In particular, in the case of high value-added ships, it achieved the No. 1 market share by winning 12.52 million CGT (191 ships), which is 65% of the global orders (19.4 million CGT, 302 ships).

When looking at the high value-added ship order performance by ship type, large LNG carriers (174 ㎦ or more), whose ship prices are rising recently, accounted for 89.3% of global orders, and VLCCs accounted for 88% of orders.

Orders for large container ships (over 120,000 TEU), which increased significantly due to a rise in shipping rates, accounted for 47.6%.

Provided by the Ministry of Trade, Industry and Energy

Provided by the Ministry of Trade, Industry and Energy

Eco-friendly ships also received about 64% of global orders (17.09 million CGT), ranking first in global orders.

The proportion of domestic orders among global eco-friendly ship orders is increasing every year, reaching 57.4% in 2019, 62.2% in 2020, and 63.6% last year.

By fuel, liquefied natural gas (LNG)-powered ships accounted for 82.4% of all orders for eco-friendly ships in Korea, followed by liquefied petroleum gas (LPG)-powered ships with 11.6% and methanol-powered ships with 4.5%.

Provided by the Ministry of Trade, Industry and Energy

Provided by the Ministry of Trade, Industry and Energy

Last year, Korea’s three large shipbuilding companies also exceeded their target orders, mainly for LNG/LPG carriers, container ships, and tankers.

Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries achieved orders of $22.8 billion, 53% more than the target order amount of $14.9 billion.

Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering also posted orders of $12.2 billion and $10.8 billion, 34% and 40% higher than their targets, respectively.

Orders are expected to decline last year and this year, when order volume rebounded. Clarkson, a British shipbuilding and shipping specialist, predicted that global orders this year will drop 23.3% from the previous year to 36 million CGT.

The Ministry of Trade, Industry and Energy explained, “Most of the demand, which had been delayed due to COVID-19, was resolved last year.

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