Chinese shipyards beat Korean firms in global orders in 2023

Hanwha Ocean's shipyard in Geoje, South Gyeongsang [HANWHA OCEAN]

Korean shipbuilders are expected to lag far behind their Chinese rivals in new global orders to place second worldwide in 2023 amid falling demand, data showed on Wednesday.

Korean shipyards won a combined 9.55 million compensated gross tons (CGTs) in new orders in the first 11 months of this year, down 39 percent from a year earlier, according to the data from global market researcher Clarksons Research Service.

The global total stood at 38.03 million CGTs, or 1,746 ships, in the 11-month period, 21 percent lower than a year earlier.

Chinese shipyards outperformed Korean players, clinching 21.89 million CGTs in new orders, which was down 6 percent from the previous year.

Korean shipbuilders obtained orders to construct 201 vessels, compared to Chinese rivals' 995 ships.

Given their track records, Chinese shipyards are expected to take the top spot in new global orders for the third straight year in 2023, with Korean industry players likely to place second.

Industry analysts attributed the tumble in Korean shipbuilders' orders to their business focus on bagging contracts for high-end, eco-friendly vessels, such as liquefied natural gas (LNG) carriers.

Despite the overall fall in orders, HD Korea Shipbuilding & Offshore Engineering, the top Korean shipyard, has achieved 136 percent of its yearly order target of $15.74 billion so far this year.

Samsung Heavy Industries has attained 69 percent of its 2023 target, with the rate for Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, reaching only 43 percent.

Meanwhile, they are expected to achieve their yearly goals as they are anticipated to win orders for 23 LNG carriers that Qatar's state-owned QatarEnergy plans to place at the end of this year, industry sources said.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]