Shipbuilding: Korea Losing Race with China
The Korean shipbuilding industry has plunged into a deep crisis as the big three —Daewoo, Hyundai Heavy, and Samsung Heavy—posted record combined losses in 2015, and 2016 looks no better.
Added to the woes, Korean shipbuilders’ orders in the first half of this year totaled 830,000 CGTs (27 ships), a whopping 88-percent drop from 6,850,000 CGTs (151 ships) a year ago, says a report in BusinessKorea.
The figure is the lowest in 20 years since 1996 Clarksons Research began to provide the data. It is also far lower than the previous record of 6,510,000 GGTs recorded in the first half of 1999.
The Korean shipbuilding industry received 7,790,000 CGTs even in the first half of 2009 when the global financial crisis sparked off a sharp drop in the worldwide shipbuilding orders. This fact shows the hellish reality Korean shipbuilders are facing now.
By contrast, Chinese shipbuilders topped the world market standings by inking 2,420,000 CGTs (92 ships) in the first half of this year.
Even though Chinese shipbuilders’ orders fell by 1,000,000 CGTs compared to 3.420,000 CGTs (194 ships) in the first half of last year, it can be said that they put up a good fight with a worldwide order draught considered.
Italy placed second as the nation received orders to build eight vessels (890,000 CGTs). Following the third-ranked Korea, Germany held the fourth place by receiving orders to build ten ships (710,000 CGTs). Japan claimed the fifth place with 520,000 CGTs (28 units).
By Aiswarya Lakshmi
