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A liquefied natural gas tanker built by Samsung Heavy Industries

After being plunged into a deep freeze by the COVID-19 pandemic, South Korea’s shipbuilding industry warmed up again during the second half of 2020. South Korea’s shipbuilding companies have successively scored major contracts even as the year comes to a close.

On Dec. 22, Samsung Heavy Industries (SHI) announced that it had recently received orders for two liquefied natural gas (LNG) tankers by shipping companies in the Oceania region, with a total value of 403.5 billion won (US$364.6 million). Just the day before, SHI had announced contracts from Oceanian shipping companies for two other LNG tankers valued at 408.2 billion won (US$368.9 million).

In just two days, SHI secured contracts for four LNG tankers valued at over US$732 million. The latest contracts bring SHI’s total orders for the year to 32 vessels (worth US$4.8 billion). The number amounts to 57% of its US$8.4 billion target for 2020.

“After its COVID-19 pandemic freeze, the shipbuilding industry is starting to heat up again,” said an SHI spokesman.

Korea Shipbuilding & Offshore Engineering (KSOE, formerly Hyundai Heavy Industries) has also received a surge of year-end orders. On Dec. 21, KSOE secured contracts from an Oceanian company for three LNG tankers worth 604.3 billion won (US$546 million). On the same day, it scored an order from a Panamanian company for seven vessels including container ships and liquefied petroleum gas (LPG) tankers, totaling 582.0 billion won (US$525.7 million). That’s 10 vessels for a total worth of around 1.19 trillion won (US$1.07 billion). These contracts bring the Hyundai Heavy Industries Group’s orders for the year to 110 vessels (US$8.9 billion), 81% of its annual target of US$11 billion.

“With inquiries coming in for many different types of vessels, we’re anticipating additional orders within the year,” said a KSOE spokesman.

According to Clarksons Research, a firm specializing in data on global shipping and shipbuilding, total global orders for the second half of 2020 (July to November) amounted to 7.5 million compensated gross tons (CGT) The figure surpassed the 6.97 million CGT in orders for the first half of 2020, indicating a recovery.

By Cho Kye-wan, staff reporter

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