South Korean media: Even South Korean companies are starting to commission Chinese shipbuilding!

On October 12, the South Korean media outlet "Today's Finance" published an article stating that the only large shipping company in South Korea, Hyundai Merchant Marine (HMM), has decided to order about 10 small vessels from Chinese shipyards rather than domestic South Korean shipyards. This is because South Korean mid-sized and small shipyards have long been unable to match the outstanding price competitiveness of Chinese shipyards.

Sources in the South Korean shipbuilding industry believe that HMM's latest order is a typical example of the current "stagnation" of mid-sized and small shipbuilding in South Korea.

HMM has preliminarily decided to order about 10 small vessels from a Chinese shipyard, with capacities ranging from 1900 TEU to 3000 TEU. The shipping industry typically classifies vessels with 1000 to 3000 TEU as "small," and those with 3000 to 10000 TEU as "medium." These vessels are planned to be deployed on routes in Asia, the Middle East, and Africa from 2027 onwards.

HMM mainly focuses on long-haul routes from Asia to North America and Europe, but in July this year, the company announced plans to diversify its portfolio by acquiring small container ships and ensure new growth engines. The small vessels ordered from China fall into this category.

Although South Korean shipyards participated in the bidding for HMM's small vessel orders, HMM ultimately chose a Chinese shipyard due to its more competitive pricing. It is reported that medium and small-sized ships built by Chinese shipyards are about 20% cheaper than domestically produced South Korean ships. This is attributed to their competitiveness in labor, land, and raw material costs.

Professor Shin Sang-moo from the Department of Ship and Ocean Systems Engineering at Pusan National University stated, "The small and medium-sized shipbuilding industry is crucial to the overall shipbuilding ecosystem in South Korea, and therefore requires government support and industry self-reliance."

Original: www.toutiao.com/article/1845774884081738/

Statement: This article represents the views of the author himself.