Korea overtakes China in new shipping orders in July

Korean shipbuilders grabbed the No. 1 ranking in new shipping orders in July for the first time this year, beating their Chinese rivals, industry data showed on Tuesday.

According to the data provided by global market researcher Clarkson Research Service, the Korean shipbuilders' new orders amounted to 500,000 compensated gross tons (CGTs), or 12 ships, in July, which accounted for 74 percent of the global new orders totaling 680,000 CGTs, or 24 ships, last month.

Chinese shipbuilders won new orders totaling 140,000 CGTs, or 24 ships, followed by Japanese shipbuilders with 30,000 CGTs, or one ship.

During the January-July period, global orders for new ships remained still in the doldrums, down nearly 60 percent from a year ago.

Global new orders have been on the decline since 2018, reaching 21.18 million CGTs, 15.73 million CGTs and 6.61 million CGTs in the first seven months of 2018, 2019 and 2020, respectively.

Chinese shipbuilders racked up new shipbuilding deals totaling 3.74 million CGTs, or 164 ships, taking up 57 percent of the total orders placed in the first seven months of this year, trailed by Korean shipbuilders with 1.68 million CGTs, or 49 ships, and Japanese ones with 680,000 CGTs, or 43 ships.

The sharp fall in new shipbuilding orders came as shippers curtailed investment amid the Covid-19 pandemic and toughened emissions regulations.

The International Maritime Organization (IMO) has adopted mandatory steps under which carriers are required to operate a fleet of vessels designed to cut emissions of carbon dioxide by more than 30 percent by 2025 compared with 2008.

Global order backlogs slightly fell by 980,000 CGTs, or 1 percent, to 69.57 million CGTs at the end of July compared with the same period a month earlier.

Chinese shipbuilders' order backlogs reached 25.64 million CGTs, or 37 percent of the total, followed by Korean shipbuilders with 19.14 million CGTs and Japanese shipbuilders with 9.46 million CGTs.

Yonhap