Korean Shipbuilding Falls to Third Place Behind China and France in May as Global Orders Plunge 64%

Global Ship Orders Down 55% Year-on-Year
South Korea Secures 250,000 CGT, Ranks Third
China 39%, South Korea 15%, Japan 9% Share

The South Korean shipbuilding industry fell to third place in global order share this May, trailing behind China and unexpectedly surpassed by France's strong performance.

According to Clarkson Research, a British shipbuilding and shipping market analysis agency, global ship orders in May totaled 1.66 million CGT (71 vessels), a sharp 64% decrease compared to the previous month (4.6 million CGT). This figure is also down 55% from the same month last year (3.66 million CGT), indicating a slowdown in the order market. By country, China maintained its top position with 640,000 CGT (42 vessels), accounting for 39% of the total. France recorded an unusual surge to second place with 540,000 CGT. South Korea remained in third with 250,000 CGT (8 vessels), representing a 15% share. Japan followed with 160,000 CGT (9%).

Although South Korea lagged slightly in the number of vessels ordered, its average order per vessel reached 31,000 CGT, about twice that of China (15,000 CGT). This is attributed to orders focused on high value-added ship types, such as LNG carriers.

For the cumulative order volume from January to May, China leads with 7.86 million CGT (274 vessels, 49% share). South Korea recorded 3.81 million CGT (95 vessels, 24%). Compared to the same period last year, order volumes for both countries decreased, with China down 58% and South Korea down 35%.

As of the end of May, the global order backlog stood at 163.44 million CGT, an increase of 1.23 million CGT from the previous month. By country, China held the largest backlog at 96.39 million CGT (59%), while South Korea accounted for 36.3 million CGT (22%). Compared to the same period last year, China’s backlog increased by 21.2 million CGT, while South Korea’s decreased by 3.09 million CGT.

Ship prices remained stable. The Clarkson Newbuilding Price Index was 186.69 points, a slight decrease from the previous month (187.11), but similar to the same period last year (186.42). By ship type, LNG carriers were priced at $255 million, very large crude carriers (VLCCs) at $125 million, and ultra-large container ships (22~24k TEU) at $273.5 million.