SEOUL, Nov. 18 (Yonhap) – Global ship new orders expected to slow next year compared to this year due to lower container ship orders, leading to lower new orders from southern shipbuilders -Koreans, according to industry analysts said.
This year will see new orders for 41.30 million compensated gross tonnes (CGT) vessels, worth $ 9.65 million, said Yang Jong-seo, a researcher at the Korea Eximbank Overseas Economic Research Institute, in his recent report.
During the January-October period, new shipbuilding orders worldwide reached CGT 40.99 million, an increase of more than 2.5 times from CGT 15.63 million a year ago. an, which had reached their highest level since the same period of 2013 when they stood at CGT 46.98 million, according to data provided by the global market research Clarkson Research Service.
“High container ship orders have triggered a boom in ship orders this year, but shippers are expected to reduce their capital spending on container ships next year as they have placed enough orders for container ships. this year, “he added.
As profits surged from the second half of 2020, container shipping companies may have invested more in container ships this year in a bid to prepare for the entry into force of strict environmental regulations from 2023, Yang said.
The International Maritime Organization aims to reduce carbon dioxide emissions from international shipping by more than 30% by 2025 and at least 50% by 2050, compared to 2008.
He predicted that new ship orders are expected to reach CGT 35million next year, down 15.3 percent from this year, to be worth $ 8.6million, and down 10.9 percent.
Unlike container ships, orders for liquefied natural gas (LNG) carriers will remain stable due to growing demand for LNG, he said.
South Korean shipbuilders are expected to register new orders of 13 million CGT next year, worth 34 billion won, down 19 percent from this year, Yang said.
Jung Dong-ik, analyst at KB Securities Co., shares Yang’s point of view.
Against the backdrop of poor new global ship orders, the financial results of local shipbuilders will be affected by raw material prices, prices of newly built ships and exchange rates next year, Jung said.
Up to five new global orders from offshore factories, which relate to offshore oil production facilities, are expected to be placed next year as crude prices are expected to rise, he added.
Contrary to forecasts of a drop in new ship orders next year, Choi Jin-myung, analyst at NH Investment & Securities Co., said new ship orders are expected to remain robust next year, citing expectations of orders for Qatar’s LNG carriers in the first half of next year and those of oil tankers in the second half.
On November 7, Qatar Energy, Qatar’s state-owned LNG producer, said on its website that it had placed the first batch of LNG shipbuilding orders from Korean shipyards.
Orders for four LNG carriers have been placed for Daewoo Shipbuilding & Marine Engineering Co. (DSME), and two LNG carriers have been placed for Samsung Heavy Industries Co. (SHI).
The orders are part of the company’s agreements signed with the three major South Korean shipbuilders – Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries and Korea Shipbuilding & Offshore Engineering Co. – in May 2020.
The deal was reached to reserve shipbuilders’ LNG carrier construction capacity by 2027 for the Qatari company’s LNG carrier fleet to further develop the country’s gas field, which is expected to reach more than 100 vessels.