Chinese shipbuilders win huge chunk of orders from Korean shippers

Last year, South Korean shipping firms placed orders for 26 ships, 22 of which were awarded to local shipyards.

PanOcean Co., the country's leading bulk carrier, placed orders to a Chinese shipbuilder for five new ships, while SM Group, a mid-sized local shipping firm, also placed orders to Chinese shipyards to build four ships.

In contrast, Chinese shippers awarded all of their orders to build 16 ships to their local shipbuilders, while Japanese shipyards clinched orders to build four out of six ships for their local shippers.

Hyundai Heavy Industries Co. and other major shipyards suffered a sharp fall in new orders last year amid worsening financial conditions that stem from a delay in the construction of offshore facilities and increased costs.

According to the data compiled by global research firm Clarkson Research Institute, Korean shipyards clinched new orders worth a combined 340,000 compensated gross tons last month to build 12 ships, trailed by Chinese rivals with 260,000 CGTs or 13 ships.

Japanese shipyards' orders came to nil.

In the January-April period, South Korean shipyards secured 1.23 million CGTs worth of new orders to build 34 ships. China took the top slot with 1.43 million CGTs, or 78 ships. (Yonhap)