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Strong Shipbuilding Orders

      8/25/2003

Shipbuilding orders won by South Korean firms surged to a high of 7.81 million compensated gross tonnage (CGT) in the first half of this year, more than double the orders received in the same period last year. According to the Ministry of Commerce, Industry and Energy (MOCIE), Korean shipbuilders received construction orders for 233 ships worth $10.57 billion in the first six months this year, up 171.7 percent from the same period a year ago.

The sharp increase in shipbuilding orders is ascribed to the worldwide trend to strengthen regulations on outmoded vessels and prevailing low prices. High value added ships such as container carriers larger than 7,500 TEUs, liquefied natural gas (LNG) carriers and large passenger ferries, made up 18.5 percent of the orders in the January-June period, up from 10.5 percent in the same period last year. Shipbuilding orders from European countries, which accounted for 72 percent of total orders in the first six months of last year, dropped to 66.7 percent this year, while orders from Asia, which made up 9.6 percent of entire orders, rose to 15.5 percent.


The Korea Times  


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