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Order Backlog of Daewoo Shipbuilding & Marine Engineering Increasing Fast

Daewoo Shipbuilding & Marine Engineering recently signed a letter of intent with ADNOC L&S regarding three very large crude carriers. The US$250 million final contract is expected to be concluded next month and the figure is expected to double when three optional vessels are included.

“The price of the ships may further rise as ADNOC L&S is considering introducing LNG propulsion systems,” said an industry source, adding, “At present, the average price of LNG-propelled VLCCs is US$120 million, approximately US$35 million more expensive than non-LNG-propelled VLCCs.”

Daewoo Shipbuilding & Marine Engineering is expected to sign a contract with Hapag-Lloyd, too. “Their contract for six very large container carriers plus six optional ships is likely to be signed within this year,” Trade Winds recently reported. The price of each 23,000 TEU LNG-propelled ship is US$165 million.

In the first three quarters of this year, South Korean shipbuilders’ new order volume stood at 2.62 million CGT, down 56 percent from a year ago, in the wake of COVID-19. After the final contract of Daewoo Shipbuilding & Marine Engineering, however, the company’s degree of progress jumps from 55 percent to 72 percent. At present, the best performer in the industry is Korea Shipbuilding & Offshore Engineering, which has achieved 57.3 percent of its goal for this year.
Source: Business Korea

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