Shipyards Claim 400 Per Cent Increase in Orders So Far This Year

SOUTH KOREA – Hyundai Heavy Industries (HHI) Group has reported a 400% increase in ship orders for the year so far as, despite existing clouds over the sector, not least the latest news concerning the German group Rickmers, there has seemingly been an upturn in trade. Between January and May, HHI and its two affiliates, Hyundai Samho Heavy Industries (HSHI) and Hyundai Mipo Dockyard (HMD) have won 62 shipbuilding contracts worth $3.8 billion, a 416% jump compared to the same period last year when the group clinched 12 ships worth $1 billion.

The figure also represents more than half of the combined three companies’ annual ship order target of $7.5 billion. In May alone, the HHI Group netted 20 ships worth $1.3 billion, and the total number and value of these new order ships can be increased to 29 ships and $1.9 billion if all the options the group has are to be exercised. In April, the three shipbuilders received 21 orders worth $1 billion.

According to UK based industry analyst Clarkson Research, it is noteworthy that HHI Group secured as much as 67% (28 ships) of 100,000 DWT or bigger tankers, and 50% (14 ships) of VLCCs that are ordered globally this year to date. An HHI Group official said:

“Considering an array of inquiries for VLCC and LNG carriers we have been receiving lately, we expect to surpass our annual order target this year. Bearing that in mind, we are redoubling our marketing efforts to meet clients’ needs on the back of our stronger fiscal soundness and differentiated shipbuilding expertise.”