Korean Joseon Tops Ship Orders in January This Year... Surpasses China

Surpassing China with 900,000 CGT in Orders

In January of this year, global ship orders significantly declined, but South Korea's shipbuilding industry surpassed its competitor China to record the highest order volume. This achievement comes as the three major domestic shipbuilders posted joint profits for the first time in 13 years last year, successfully fending off China's pursuit from the beginning of the year.

According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, global ship orders last month totaled 1.46 million CGT (Compensated Gross Tonnage, equivalent to 51 vessels), a sharp 74% decrease compared to the same period last year. South Korea secured 900,000 CGT (13 vessels, 62%) of this, taking first place in order volume ahead of China, which followed with 270,000 CGT (19%). Considering that in December last year, South Korea and China recorded order volumes of 130,000 CGT (6%) and 1.93 million CGT (82%) respectively, South Korea’s performance shows significant improvement.

Trial operation scene of the ultra-large LNG dual-fuel container carrier built and delivered by HD Korea Shipbuilding & Offshore Engineering in 2024 (Photo by HD Korea Shipbuilding & Offshore Engineering)

In terms of the number of vessels, South Korea and China secured 13 and 21 vessels respectively. South Korea’s orders were centered on high value-added large vessels, while China focused on low value-added small vessels. As of the end of last month, the global order backlog (remaining construction volume) was 156.79 million CGT, down 1.32 million CGT from the end of the previous month. By country, the order backlog was led by China with 91.51 million CGT (58%), followed by South Korea with 37.02 million CGT (24%).

The Clarkson Newbuilding Price Index recorded 189.38 points, rising 0.22 points (5%) compared to the same month last year. The price per vessel by type was $260 million (approximately 376.5 billion KRW) for liquefied natural gas (LNG) carriers over 174,000 m³, $129 million for very large crude carriers (VLCC), and $275 million for ultra-large container ships.

Meanwhile, the three major domestic shipbuilders posted a combined operating profit exceeding 2 trillion KRW last year, marking joint profitability for the first time in 13 years. This year, they plan to improve profitability by focusing on a portfolio of high value-added vessels.

Samsung Heavy Industries recorded sales of 9.9031 trillion KRW and an operating profit of 502.7 billion KRW last year, representing increases of 23.6% and 115.5% respectively compared to the previous year. HD Hyundai Heavy Industries posted an operating profit of 1.4341 trillion KRW, and Hanwha Ocean recorded 237.9 billion KRW. This is the first time since 2011 that the three shipbuilders have simultaneously turned a profit, with the profit scale increasing sevenfold compared to 2023 (319.1 billion KRW).