Cumulative Korean Shipbuilding Orders Reach $10 Billion, Second Highest Ever
[Asia Economy Reporter Choi Dae-yeol] Samsung Heavy Industries announced on the 18th that it has signed a $1.7 billion (2.0453 trillion KRW) contract with Eurasia Shipowners. This contract covers blocks, equipment, and design for seven shuttle tankers, which are scheduled to be constructed and delivered by the end of January 2027.
With this contract, Samsung Heavy Industries recorded cumulative orders of 71 vessels worth $10.3 billion (approximately 11.6 trillion KRW) for the year. Earlier in May, the company raised its annual order target from the initial $7.8 billion to $9.1 billion, exceeding it by 13%. Among the vessels ordered this year, container ships accounted for the largest number at 44, followed by 13 liquefied natural gas (LNG) carriers, and 14 crude oil carriers including shuttle tankers.
This is the second time since 2007, considered the peak of the 'supercycle,' that Samsung Heavy Industries has surpassed $10 billion in shipbuilding orders. At that time, Samsung Heavy Industries secured $12.6 billion in orders. The company stated, "We regard this as a positive signal of recovery in the shipbuilding market."
The company expects the market situation to improve further. According to last month's Clarkson Research shipbuilding market outlook report, the International Maritime Organization (IMO)'s strengthened carbon emission regulations are expected to accelerate demand for eco-friendly ships and the replacement of aging vessels. Clarkson forecasts that the annual average ship orders from 2023 to 2031 will increase to about 1,900 vessels, double the number from last year. This suggests a high likelihood of a prolonged favorable shipbuilding market.
A Samsung Heavy Industries official said, "As decarbonization regulations are strengthened, inquiries for high-efficiency eco-friendly ship orders are increasing," adding, "We will further expand high-quality orders during the remaining period of this year."
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