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South Korean Shipbuilders Half of Ultra Large Container Ship Order Backlogs

Logistic News - Published on Thu, 18 Jul 2019

Image Source: Maritime Executive
Business Korea reported that South Korean shipbuilders are leading the ultra large containership market as well as liquefied natural gas carrier. Daewoo Shipbuilding and Marine Engineering Co is planning to deliver one of five 23,000 TEU containerships ordered by Swiss-based shipping line Mediterranean Shipping Co in September 2017 on July 19. This is the same size with the world’s largest containership built by Samsung Heavy Industries Co and delivered to MSC earlier. Previously, MSC placed an order for 11 vessels – 6 with Samsung Heavy and five with DSME, respectively. There is a fine line between the ships being built by the two companies in terms of deadweight tonnage but they all can ship 23,000 containers. This ultra large vessel is priced at USD 164 million per ship. Ultra large container ships with capacity surpassing 20,000 TEU boast of high added value of USD 144.19 million per vessel.

The South Korean shipbuilding industry believes that it stands out due to from the International Maritime Organization regulations scheduled to kick off January 1st 2020, to reduce sulfur oxide emission from 3.5 percent m/m to 0.5 percent m/m. In fact, the ships ordered by MSC to Samsung Heavy and DSME are LNG-ready vessels with scrubbers that can be easily remodeled into LNG-powered ones. This is why domestic shipbuilders have 56.3 percent of the total order backlogs for ultra large container vessels.

DSME has the largest cumulative order backlogs for container ships with a capacity of more than 15,000 TEU from January 1st to July 5th this year at 12 and 18.8 percent, followed by Samsung Heavy with 11 and 17.2 percent. Hyundai Heavy Industries Co came in fourth with 8 and 12.5 percent and Samho Heavy Industries Co eighth with 5 and 7.8 percent.

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Posted By : Sanju Moirangthem on Thu, 18 Jul 2019
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