|Worldwide newbuilding orders during the first half of this year dropped by 42% from the same period last year. However, new orders for South Korean shipbuilders have skyrocketed in the period, with large shipyards taking over 50% of market share.|| |
Thanks to Korean big shipbuilders' high-value ship technology, they were able to outperform their previous performances, even under recession of entire shipbuilding industry.
These days, gap between shipbuilders with high-technology and those without it seems to be getting larger.
Meanwhile, researcher Lee Seok-Jae from Seoul-based Mirae Asset Securities, forecast that weak business performance of Korean yards will last until the end of 2012, as low-margin newbuildings ordered after the global financial crisis are delivered.
He also expected that new order in H2 would be lower than H1, as shipbuilders would seek to win orders selectively, rather than actively pitching into inking orders.
Large shipbuilders have already reached 70-80% of their target order and winning massive orders in H2 seems hard without enough room in dock slots.
However, newbuilding price would positively rise from selective order intake strategy.
Also, as the International Maritime Organization recently decided to introduce regulation over fuel efficiency, demand for Korean-built eco-ships, which are about 15-20% more fuel efficient than Chinese-built ships, is expected to rise.
Published : July 28, 2011