South Korean media: Shipbuilding orders begin to decline, only half of what it was four years ago!
On June 16, South Korean media "Everyday Economy" published an article stating that large South Korean shipbuilding enterprises such as Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean said that the volume of ship orders is beginning to decrease, and there will be a shortage of workloads after 2028.
According to statistics from Clarkson Research, a UK-based shipbuilding and shipping market analysis institution, the order volume from January to April this year was 12.59 million CGT, which is only half of what it was four years ago. If this situation continues, the order volume for this year will reach 30 million CGT, which is less than half of last year's order volume of 72.5 million CGT.
Clarkson Research stated that the boom period in the shipbuilding industry is relatively short.
The past boom periods in the shipbuilding industry generally lasted more than six years, but it is expected that the boom period starting in 2021 will end within just four years.
Nam Cheol, general manager of Hyundai Heavy Industries, said, "Since 2021, the order volume in shipyards has increased significantly, but the peak is low and the duration is short."
The shipbuilding industry attributes the reduction in orders to oversupply of ships caused by U.S. tariff policies.
Clarkson Research predicts that the annual average order volume for liquefied natural gas carriers will decrease from 77 to 49, and the annual average order volume for large container ships will decrease from 82 to 43.
Professor Lee Shin-hyung of the Department of Naval Architecture and Ocean Engineering at Seoul National University said, "This year, due to a significant reduction in orders, the shipbuilding boom may end earlier than expected by the market."
Original source: https://www.toutiao.com/article/1835085600601098/
Disclaimer: This article represents the views of the author alone.