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Thursday, March 13, 2014

[KMTI ⑪] Korean Shipbuilding Industry in 2013

Status of Korean Shipbuilding Industry in 2013

Orders

As the global shipbuilding order volume increased 92.5% year-on-year in 2013, domestic shipyards (based on the nine member companies of Korea Offshore & Shipbuilding Association) won 13.69 million CGT of newbuilding orders in the year, up 90.9% from 2012.

In terms of ship type, orders for bulk carriers, containerships, tankers, etc. increased in the major commercial ship sector while orders in the offshore sector were sluggish compared with the previous year. Of particular note, orders were steady for medium-range (MR) tankers due to enhanced fuel mileage, lower ship price and more favorable charterage than other ship types. Meanwhile, drillship orders, most of which were won by large Korean shipyards, decreased year-on-year.

New Shipbuilding

In 2013, the shipbuilding volume of Korean shipyards recorded 12.50 million CGT, down 8.1% from 2012. In the midst of a year-on-year decrease of 21.8% in the global shipbuilding volume, Korean shipyards also experienced a reduction due to declines in work in progress, delay in ship delivery schedules, etc.

By ship type, containerships still accounted for the largest ratio of 40.1%, followed by tankers at 21.2% and bulk carriers at 7.5%. In the case of high value-added containerships, meanwhile, Korean shipyards built nine ships in 2013 compared with one ship in 2012.


Exports

In 2013, Korea's ship exports decreased 6.6% year-on-year to US$37.1 billion, which fell short of the US$40.5 billion projected at the beginning of the year due to a decline in shipbuilding volume and delay in deliveries.

The ratio of the shipbuilding industry in the nation's total exports was less than 10% for the second consecutive year due to declines in export unit prices. However, the industry is still playing a locomotive role in the development of the national economy as one of the largest export sectors. 

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