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Korean Shipbuilders’ Order Intake in Q1 Increases 10-fold from a Year Earlier

Korean shipbuilders’ order intake in the first quarter of 2021 was 10 times more than a year ago.

With the global shipbuilding market slumping due to COVID-19, Korean shipbuilders won orders 10 times more than 2020 in the first quarter of 2021.

Their order intake amounted to 5.32 million CGTs (126 ships), more than half of the global total of 10.24 million CGTs in the first quarter, said Clarkson Research, a British shipbuilding and shipping market analysis company

In the first quarter of 2020, Korea’s order intake was only 550,000 CGTs, or 14% of the global total. Compared to a year ago, Korean shipbuilders’ orders surged 10 times. In addition, their share soared to 52 percent.

Korea Shipbuilding & Offshore Engineering, the world’s No. 1 shipbuilder, won orders for 68 ships worth US$5.5-billion (excluding offshore plants) in the first quarter of 2021, attaining 37 percent of its annual order target of US$14.9 billion.

Samsung Heavy Industries has logged orders for a total of 42 ships valued at US$5.1 billion, including an order for 20 large container ships from Evergreen, a Taiwanese shipping company. The company already achieved 65 percent of its US$7.8 billion order target for 2021. Its orders in the first quarter of 2020 were only three shuttle tankers worth US$300 million.

Daewoo Shipbuilding & Marine Engineering (DSME) landed a total of 19 ships worth US$1.79 billion, including the 10 LNG dual-fuel propulsion VLCCs (1.1 trillion won) awarded in early April. It attained 23 percent of its target for 2021 (US$7.7 billion).

The combined order influx of the Big 3 Korean shipbuilders in the first quarter of 2021 reaches 14 trillion won. Industry insiders believe that Korean shipbuilders enjoyed an increase in order intake for eco-friendly ships that can satisfy environmental regulations set by the International Maritime Organization (IMO). In particular, they explain that the best choice for clients who want to order eco-friendly ships is Korean shipbuilders with technological prowess.

The fact that 15 of the 19 ships awarded to DSME in 2021 are dual-fuel propulsion vessels reflects this trend.
Source: Business Korea

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