An aerial view of Samsung Heavy Industries' shipyard in Geoje. [Samsung Heavy Industries]
An aerial view of Samsung Heavy Industries' shipyard in Geoje. [Samsung Heavy Industries]

Global shipbuilding orders surged 65 percent year-on-year in the first seven months of this year, with South Korea capturing a 17 percent cumulative share amid the strong market. While July's monthly orders slowed, the new ship price index at the end of the month stood 29 percent above its level five years ago, signaling a clear upward trend in vessel prices.

According to Clarkson Research, a London-based shipping and shipbuilding market intelligence firm, cumulative global orders from January through July reached 50.93 million compensated gross tons (CGT), or 1,778 vessels — up 65 percent from 30.95 million CGT (1,296 vessels) in the same period last year. South Korea accounted for 8.7 million CGT (218 vessels, 17 percent), a 61 percent increase year-on-year, while China recorded 38.02 million CGT (1,394 vessels, 75 percent), up 107 percent.

Global orders for July alone totaled 3.57 million CGT (137 vessels), down 56 percent from the previous month's 8.03 million CGT and 22 percent below the 4.55 million CGT recorded in July last year. By country, South Korea secured 570,000 CGT (21 vessels, 16 percent) and China took 2.9 million CGT (111 vessels, 81 percent).

The global order backlog at the end of July stood at 211.75 million CGT, up 2.32 million CGT from the previous month. South Korea held 38.23 million CGT (18 percent) and China 140.22 million CGT (66 percent). Compared with the prior month, South Korea's backlog fell by 480,000 CGT while China's grew by 3.61 million CGT. Year-on-year, South Korea's backlog rose by 3.03 million CGT and China's by 34.64 million CGT.

Meanwhile, the Clarkson new ship price index at the end of July rose 0.34 points from June's reading of 185.15 to reach 185.49 — up 29 percent from 143.95 in July 2021. By vessel type, end-July prices were $248.5 million for LNG carriers, $130.5 million for very large crude carriers (VLCC) and $259.5 million for ultra-large container ships (22,000–24,000 TEU).


keg@heraldcorp.com