South Korean media: The market occupied by Chinese enterprises, South Korea "is back"!

On April 4, the South Korean media "Korea Economic Daily" published an article stating that Hanwha Ocean recently received orders for six 24,000 TEU (1 TEU is a 20-foot container) ultra-large container ships from Evergreen Group, with an order amount of 2.3286 trillion Korean won (approximately 11.7 billion yuan RMB). This contract accounts for 31.4% of Hanwha Ocean's total sales last year (7.4083 trillion Korean won), making it a significant contract. This is the first time Hanwha Ocean has received an ultra-large container ship order since June 2021, after a span of three years and nine months. Analysis suggests that South Korea is regaining control of ultra-large container ship orders that were taken over by Chinese enterprises.

From 2011 to 2017, when ultra-large container ships entered the market, South Korean shipyards secured 100% of global orders. However, as Chinese shipbuilding enterprises gradually expanded their market share with lower prices, ultimately, in 2021, Chinese shipbuilding enterprises surpassed South Korea in ultra-large container ship orders. Starting in 2023, Chinese enterprises accounted for 100% of the order share.

Relevant personnel from South Korea's domestic shipbuilding industry stated, "Due to Chinese shipyards taking orders at low prices, South Korean shipyards had to turn to higher value-added ship types such as liquefied natural gas (LNG) carriers."

However, the situation has changed recently. As of February, the new ship price for ultra-large container ships reached $275 million, up 27.9% compared to two years ago ($215 million), improving profitability and increasing demand for container ships. The International Maritime Organization (IMO) has strengthened environmental regulations, necessitating eco-friendly vessels such as dual-fuel propulsion ships. The container ships ordered by Hanwha Ocean this time will adopt LNG dual-fuel engines.

Source: https://www.toutiao.com/article/1828473972499531/

Disclaimer: The article solely represents the views of the author.