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Hyundai Heavy Expects Global Ship Orders to Drop for Third Year |
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Wednesday, 10 March 2010 |
 Hyundai Heavy Industries Co., the world’s largest shipbuilder, expects demand for vessels to fall for at least a third year in 2010 as shipping lines pare expansion plans to curb overcapacity.
Shipowners may order about 10 million tons of new vessels worldwide this
year, Chief Executive Officer Min Keh Sik said in an interview today in
Gwacheon, a city near Seoul. That compares with 18.6 million tons last
year and 102.7 million tons in 2008, according to figures from Clarkson
Plc, the world’s largest shipbrokers.
“There is nothing to expect in terms of new orders until next year,” Min
said. “It will be a slow and marginal recovery.”
Demand for new vessels has plunged since September 2008 after the credit
crisis made it harder for shipowners to borrow funds and because the
global recession sapped cargo traffic. Owners also have orders
outstanding for vessels with a combined capacity equal to about 40
percent of the existing global fleet, according to Clarkson, after
signing deals before the slump.
Industrywide demand may grow to 20 million tons next year, followed by
an increase to 30 million tons in 2012, Min said.
Hyundai Heavy aims to win $4 billion worth of orders for ships this
year, compared with the $444 million it received in 2009. The company,
based in Ulsan, South Korea, had a backlog worth $28.1 billion for 241
vessels at the end of January.
Hyundai Heavy, which also makes offshore platforms and wind-power
equipment, gained as much as 1.6 percent to 227,000 won and traded at
225,500 won as of 1:49 p.m. in Seoul. The stock has climbed 28 percent
in the past year compared with a 55 percent rise for South Korea’s Kospi
index.
Source: Bloomberg
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