Newbuilding prices are likely to stay on the upswing as inflationary pressures persist.
Despite a correction in newbuilding orders, shipyards in China and South Korea have increased their prices as the Russia-Ukraine war has made raw materials more expensive.
Clarksons’ latest monthly report showed that in July, global ship orders remained at 210 million compensated gross tonnes (CGT), down 48% from 401 million CGT in July 2021.
Shipyards in South Korea saw orders decline by 36% year-on-year, to 116 million CGT in July, while their Chinese rivals suffered a 65% year-on-year drop in orders, to 62 million CGT.
Orders for container ships, tankers and LNG carriers were evenly split among South Korea’s major shipbuilders. And while overall newbuilding orders in South Korea had fallen, the country’s yards swept orders for all 12 LNG carriers commissioned in July. Hyundai Heavy Industries won 10 LNG carrier orders, with the other two taken by Daewoo Shipbuilding & Marine Engineering.
In July, the Clarkson Newbuilding Price Index hit 161.57 points, up 1.47 points from last month, continuing its 20-month upward trend since December 2020.
Prices of 174,000 m³-class LNG carrier rose the most, recording US$203.6 million, up US$5 million from July 2021. VLCC prices rose US$150 million to US$101.9 million, and the bulk carrier prices rose US$500,000 to US$645 million.
South Korea’s Ministry of Trade, Industry and Energy said, “Due to the increasing demand for eco-friendly vessels in accordance with the International Maritime Organization’s environmental regulations and the increase in LNG demand due to the Russia-Ukraine war, South Korean shipyards have seen more orders for eco-friendly vessels and LNG carriers. This is expected to continue in the second half of this year.”
Martina Li
Asia Correspondent
