2003-05-20 17:45

1st Qtr shipbuilding orders surge to all-time high

Shipbuilding orders given to local shipbuilders in the first quarter of 2003 surged to an all-time high of 4.03 million compensated gross tonnage (CGT), up 340 percent from the corresponding period a year ago.
According to the Ministry of Commerce, Industry and Energy yesterday, vessel construction orders won in the first three months of this year surpassed the previous record-high figure of 3.65 million CGT posted in the fourth quarter of last year by 10.6 percent.
South Korea received 123 vessel construction orders in the first quarter, equal to 4.03 million CGT, worth $5.36 billion.
The shipbuilding orders won in the cited period are equal to 63 percent and 53 percent of the total annual shipbuilding orders the country won in 2001 and 2002, respectively.
?he sharp increase in shipbuilding orders is attributed to the worldwide trend to strengthen regulations on outmoded vessels after the submergence of an outdated oil tanker in Spanish waters in November last year, and an increase in the issuance of shipbuilding orders by Asian countries due to a surge in their domestic raw material demand,?said Moon Jae-do, a director at the ministry.
Large container carriers of greater than 7,500-TEU (20-foot equivalent unit) made up 51 percent of the total orders won by South Korean companies between December and the end of March.
In the meantime, international ship prices increased for most vessel types by 4-5 percent from the end of last year, including oil tankers, container ships and bulk carriers.
Accordingly, the nation? shipyards are forecast to show stable growth over the next several years as they are in the process of completing a backlog of orders that they won in 1999.
South Korean shipbuilders?backorders at the end of March amounted to 558 vessels equal to 19.2 million CGT, valued at $28.04 billion, which is equivalent to two and a half years of construction work for the local dockyards.
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