South Korean media: China sweeps global container ship orders!
On November 21, the South Korean media "Korea Economic Daily" published an article stating that Chinese shipbuilding companies are sweeping the global container ship market. They have secured more than 70% of recent container ship orders. Previously focused on container ships, South Korean shipbuilding companies can only grab the remaining orders, further consolidating China's dominant position. Experts point out that South Korean shipbuilding companies should surpass the container ship market dominated by China and focus on high-value-added vessels such as marine equipment.
According to data from the British shipping market research company Alphaliner, the backlog of global container ship orders in October reached a record high of 10 million TEU, of which 74.0% (7.49 million TEU) were from Chinese shipbuilders, while South Korean shipbuilders accounted for only 20.2% (2.04 million TEU).
The order backlog refers to the ships ordered by shipping companies that are still under construction, reflecting recent order trends. On the other hand, the operating capacity of container ships reflects previous order conditions. The total container ship capacity currently in operation around the world is 32.7 million TEU. South Korean shipyards account for 50.1% (16.4 million TEU), while Chinese shipyards account for 29.4% (9.6 million TEU). This means that although South Korean shipyards have traditionally supplied most container ships, Chinese shipyards have recently dominated the new order market.
Three major South Korean shipbuilding companies - Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries - are strengthening their container ship business to maintain their market position. In 2023, Hyundai Heavy Industries' contracted 95 ships, of which 59 were container ships. Hanwha Ocean contracted 32 ships this year, 13 of which were container ships. It is reported that Samsung Heavy Industries recently received an order for 7 LNG-powered container ships.
However, with Chinese shipbuilders launching a low-price offensive, profitability is deteriorating. Chinese shipyards are competing for orders at prices more than 10% lower than those of South Korean shipyards. Additionally, global LNG carrier orders fell by 83% year-on-year in the first half of this year, leading to a shift in shipbuilding orders toward container ships. As a result, the new cost of container ships has dropped from $275 million in February to $270 million last month.
Experts pointed out that South Korean shipyards need to diversify their investment portfolios, covering general cargo ships and marine equipment in addition to container ships and LNG carriers. An industry insider from South Korea said, "Container ships accounted for more than 60% of new orders this year, and the sales stability of South Korean shipyards may face threats. They need to introduce environmental protection technologies in general-purpose ships such as bulk carriers and tankers, enhance added value, and build a differentiated competitiveness in LNG carriers and marine equipment."
Original: www.toutiao.com/article/1849373364647433/
Statement: This article represents the views of the author."