In May 2023, the global shipbuilding orders experienced a significant decline of over 50% compared to the same month last year. Despite this downturn, South Korea managed to secure the second position in order volume, trailing only China.
According to data published by Clarkson Research, a British maritime market analysis firm, the global ship orders totaled 1.66 million Compensated Gross Tonnage (CGT) for 71 ships. This figure represents a substantial drop from the 3.66 million CGT recorded in May 2022.
Korea’s share stood at 250,000 CGT, accounting for 15% of the total orders, while China led with 620,000 CGT, representing 39% of the orders. Notably, the average CGT per ship for Korea was 31,000 CGT, significantly higher than China’s 15,000 CGT.
This indicates that South Korea focused on securing more high-value and sophisticated vessels than its Chinese counterpart. As of the end of May, the global order backlog was recorded at 163.44 million CGT, showing an increase of 1.23 million CGT from the previous month.
In terms of order backlog by country, China held the majority with 96.39 million CGT (59%), while Korea had 36.3 million CGT (22%). It is important to note that both countries’ order backlogs decreased compared to the same time last year, with Korea’s backlog falling by 3.09 million CGT and China’s by 21.2 million CGT.
The Clarkson ship newbuilding price index also saw a decline, dropping by 0.42 points from the previous year to reach 186.69 points. The prices for various types of ships included $255 million for a liquefied natural gas (LNG) carrier exceeding 174,000 cubic meters, $125 million for a very large crude carrier (VLCC), and $273.5 million for a very large container ship.