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South Korea reclaimed top spot for newbuildings in October

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Though China trailed behind Korea for newbuildings, the republic is still leading in the builders’ chart

Most shipbuilding capacity lie in China, Korea, and Japan. Despite failing to top the order list for October 2021, China is still the largest shipbuilder in the world.

China’s robust orders
Clarksons Research’s findings showed newbuilding orders totalled to 3.28 million compensated gross tonnage (CGT) – translating to 116 vessels for September 2021. However, latest statistics revealed the Korean shipyards sealed 1.12 million CGT, or 52 per cent of the total 2.13 million CGT, in new orders for October 2021, while China clocked 810,000 CGT.

Notably, the republic secured the largest cumulative orders at 19.93 million CGT over the past 10 months, followed by Korea at 15.79 million CGT and Japan with 3.71 million. Global ship orders from January to October reportedly soared 162 per cent from the same period last year to 40.99 million CGT – its highest since 2013. Orders for large-sized container vessels increased sharply with the rapid growth of international trade.

Orders for very large container ships – 120,000 twenty-foot equivalent unit (TEU) or larger ones hiked 804 per cent on year from January – October to 11.09 million CGT. Orders for liquefied natural gas (LNG) carriers grew 99 per cent to 4.76 million CGT and bulk carriers by 213 per cent to 2.34 million.

Global order backlog reached 89.03 million CGT in October 2021, up 280,000 CGT from the previous month. Order backlog for Korean shipyards amounted to 28.82 million CGT, reaching a 5-year high after rising at its fastest from the previous month. China led with 36.33 million CGT in order backlog, and Japan came in third with 9.44 million.

Newbuilding prices hiked accordingly
Clarkson’s Newbuilding Price Index, which shows price changes in newbuildings, stood at 152.28 in October 2021, up 3 points from September. It surpassed 150 for the first time in 12 years since June 2009, and gained more than 20 per cent from January this year.

Prices for all types of ships rose last month. The price of 174,000 m3 LNG vessels ballooned to US$203 million, after surpassing the US$200 million mark for the first time in 5 years in September. The price of 22,000-24,000 TEU container ships reached US$183.5 million, very large crude carriers (VLCC) at US$108 million, S-max oil tankers US$74.5 million, and A-max crude tankers US$59 million.

 

Marine Online News Team
Please email us at marketing@marineonline.com to contact the author for this article.

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