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HMM St. Petersburg is docked at Samsung Heavy Industries shipyard in Geoje, South Gyeongsang Province. (provided by Hyundai Merchant Marine)

The South Korean Ministry of Trade, Industry and Energy (MOTIE) announced Sunday that the domestic shipbuilding industry received 10.88 million compensated gross tons (CGT) in orders during the first half of 2021.

The total amounted to 44% of the 24.52 million CGT in orders worldwide over the same period. In terms of dollar value, it came out to 49%, accounting for US$26.7 billion of the US$54.9 billion total.

The orders represent the best first-half performance in the 13 years since the shipbuilding boom of 2006 to 2008, marking a 724% increase from last year and a 183% rise from 2019 levels. In 2008, orders were recorded at 13.45 million CGT for the first half of the year or 34% of the 39.27 million CGT in orders worldwide at the time.

According to the MOTIE, the shipbuilding industry’s strong performance stemmed from high value-added ship orders driven by domestic businesses.

In terms of high value-added container ships, very large crude carriers (VLCC), and LNG carriers, South Korean shipbuilding companies received 7.23 million out of 11.89 million CGT in global orders, or 61%. The total amounted to 66% of all domestic orders received.

By ship type, South Korean companies received 100% of global orders for large LNG carriers. Other orders included 81 large container vessels — which have experienced a boost in orders as freight charges rise — and 27 VLCCs.

Also among the orders were 12 large 13,000 TEU-class container ships (650,000 CGT, US$1.56 billion) contracted on June 29 by Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Hyundai Merchant Marine.

Orders for eco-friendly ships totaled 4.8 million CGT, a rise of 806% from the 530,000 CGT recorded in the first half of 2020. Globally, they accounted for 70.1% of the 6.85 million CGT in total orders.

That proportion — which has increased annually, reaching 60.9% in 2019 and 63.8% in 2020 — shows the competitive advantage that South Korea has established in the eco-friendly ship market, the MOTIE said. Eco-friendly ships are those that use LNG, LPG, ethane, methanol, and biofuel for propulsion.

The balance of orders stood at 26.73 million CGT as of late June, up by 34% from 19.96 million CGT in late June 2020. It’s also greater than the total shipbuilding volume of 26.09 million CGT for the three years from 2018 to 2020.

“Considering the LNG carrier order that is expected in the second half of the year [from Qatargas], the prospects for global orders and domestic order performance appear favorable,” the MOTIE said.

The ministry also announced plans to “provide focused support so that domestic shipbuilding companies can maintain their competitiveness through projects for autonomous ship development and development of innovative technologies for all cycles of eco-friendly ships.”

By Kim Young-bae, senior staff writer

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