The global new shipbuilding market continued to cool down in September. Although Chinese shipbuilders maintained their leading advantage and remained at the top of the list, the gap with South Korea is gradually narrowing.
According to data released by Clarkson on October 5th, the global volume of new ship orders in September was 123 vessels, totaling 3.5 million Compensated Gross Tons (CGT). Measured in CGT, this represents a 44% decrease compared to the 6.29 million CGT in the same period last year and a 3% decrease compared to the 3.6 million CGT in August this year. Among these, Chinese shipbuilders secured new orders for 69 vessels, totaling 1.42 million CGT, capturing 40% of the global market share and ranking first. South Korean shipbuilders received orders for 33 vessels, totaling 1.35 million CGT, capturing 39% of the global market share and ranking second.
Industry insiders in South Korea stated that in terms of the number of orders received in September, South Korean shipbuilders received less than half of those received by Chinese shipbuilders. Despite being far behind China in number, the average CGT per vessel for South Korea was 41,000 CGT, nearly double China’s 21,000 CGT. This indicates that South Korean shipbuilders continued their selective order-taking strategy focused on high-value-added vessels. Consequently, the value per new vessel ordered is higher, allowing South Korea to almost “keep pace” with China on the September order intake ranking.
From January to September this year, the cumulative global volume of new ship orders was 1,185 vessels, totaling 32.64 million CGT. Measured in CGT, this is a 47% decrease compared to the 2,560 vessels totaling 61.43 million CGT in the same period last year (January-September). Among these, Chinese shipbuilders secured orders for 725 vessels, totaling 18.33 million CGT, a year-on-year decrease of 58%, with a market share of 56%, ranking first globally. South Korean shipbuilders secured orders for 169 vessels, totaling 7.34 million CGT, a year-on-year decrease of 17%, with a market share of 22%, ranking second.
Looking at the order intake situation of the Chinese and South Korean shipbuilding industries in the first eight months of this year, China ranked first on the order intake list six times (in February, April, May, June, July, and August), while South Korea only did so twice.
However, since the second half of this year, the global order market share of the South Korean shipbuilding industry has been increasing month by month. In July, Chinese shipbuilders secured 75% of global new ship orders; South Korean shipbuilders held only a 16% global market share, ranking second. In August, Chinese shipbuilders held a 75% market share; South Korean shipbuilders held a 23% market share, a 7 percentage point increase from July, ranking second.
Industry insiders in South Korea stated that although the total order intake of the South Korean shipbuilding industry from January to September decreased by 17% year-on-year, it will continue to maintain the tone of “selective order-taking” centered on high-value-added ship types. This is because accepting higher-quality orders helps shipbuilders improve their revenue and increase profitability.
A relevant industry insider in South Korea said: “In the past two years, because South Korean shipbuilders adhered to a selective order-taking strategy, the gap in global market share with the Chinese shipbuilding industry kept widening. However, this year, South Korean shipbuilders have instead gained the conditions to propose more attractive delivery schedules to shipowners. Therefore, the market share of the South Korean shipbuilding industry will return to a normal state. Most of the orders received by South Korean shipbuilders during the period of low-price恶性竞争 have been delivered, and the proportion of low-price orders in the order backlog is now minimal. At the same time, the labor shortage problem in the South Korean shipbuilding industry will be effectively resolved, and the pace of performance improvement for shipbuilders will be faster than previously expected.”
As of the end of September this year, the global order backlog was 165.99 million CGT, an increase of 70,000 CGT compared to the end of August. Among these, China’s new ship order backlog reached 100.86 million CGT, an increase of 9.88 million CGT year-on-year and an increase of 310,000 CGT month-on-month, steadily maintaining the first position with a 61% market share. South Korea’s new ship order backlog was 33.81 million CGT, a decrease of 4.21 million CGT year-on-year and a decrease of 440,000 CGT month-on-month, with a market share of 20%, ranking second.
In September this year, new shipbuilding prices maintained a steady trend. The Clarkson Newbuilding Price Index was 185.58 points, down 0.68 points from 186.26 points in August, but up approximately 47% compared to the 126.61 points in the same period five years ago.
By ship type, the price for a 174,000 cubic meter large LNG carrier was $250 million, unchanged from August; the price for a VLCC was $126 million, unchanged from August; the price for a 22,000~24,000 TEU ultra-large container ship was $270 million, also unchanged from August.
