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            december 08, 2019

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Proud Korean shipbuilders lead in building mega box ships by far


Proud South Korean shipbuilders are leading the ultra large containership market as well as liquefied natural gas (LNG) carriers, reports BusinessKorea.
Daewoo Shipbuilding and Marine Engineering Co (DSME) is planning to deliver one of five 23,000-TEU ships ordered by Mediterranean Shipping Co (MSC) 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 - six with Samsung Heavy and five with DSME.
A 23,000-TEU ultra large vessel is priced at US$164 million per ship. Ultra large containerships with capacity surpassing 20,000 TEU boast of high added value at US$144.19 million per vessel.
The South Korean shipbuilding industry believes that it stands out due to from the International Maritime Organisation (IMO) regulations scheduled to kick off January 1, 2020, to reduce sulphur oxide emission from 3.5 per cent m/m to 0.5 per cent m/m.
Ships ordered by MSC to Samsung Heavy and DSME are LNG-ready vessels with scrubbers that can be easily remodelled into LNG-powered ones.
This is why domestic shipbuilders have 56.3 per cent of the total order backlogs for ultra large container vessels.
DSME has the largest cumulative order backlogs for containerships with a capacity of more than 15,000 TEU from January 1 to July 5 this year at 12 and 18.8 per cent, followed by Samsung Heavy with 11 and 17.2 per cent. Hyundai Heavy Industries Co came in fourth with eight and 12.5 per cent and Samho Heavy Industries Co eighth with five and 7.8 per cent.
In addition, the industry expects that there would be the so-called chicken game in the shipping industry to win orders to build ultra large containerships.
Said one official: "Currently, shipping companies can't help but join a shipping alliance or expand competitiveness by securing ultra large container vessel deals to survive."
Taiwanese shipping giant Evergreen Marine is preparing to place an order to construct up to eleven 23,000 TEUers. Germany's Hapag-Lloyd is also considering ordering six ships of the same size.
Samsung Heavy and DSME announced that they have already started to prepare for bids for Evergreen. Hyundai Heavy is also forecast to participate in the tender.

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