Ship Orders May Jump 4% as Recovery Spurs Fuel Demand
Global shipbuilding orders may rise 4 percent this year to the highest since 2008 as economic recovery drives demand for consumer goods and fuel. Thursday, 13.Jan.2011, 10:09 (GMT+3)
Global shipbuilding orders may rise 4 percent this year to the highest since 2008 as economic recovery drives demand for consumer goods and fuel, according to estimates South Koreaâ€™s industrial ministry released today.
New vessel contracts will probably rise to 35 million compensated gross tons, led by orders for ships to carry containers and liquefied natural gas, South Koreaâ€™s Ministry of Knowledge Economy said. The tonnage total would be the most since 2008, when it was 47.1 million tons, according to Clarkson Plc., the worldâ€™s largest shipbroker.
Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., the worldâ€™s two biggest yards, and their four largest rivals will probably win 33 percent more orders this year amid faster growth for the offshore project and container ship sectors they dominate, according to the ministryâ€™s estimate. Global trade may expand 7 percent this year, the International Monetary Fund has said.
â€śWe are forecasting an optimistic outlook for container ships and offshore projects this year,â€ť the industrial ministry said in the statement. â€śShipping rates for the container sector are expected to maintain a gradual increase this year.â€ť
Contracts for container ships may almost double to 6.7 million tons this year as global box shipping volume is expected to grow 10 percent, the ministry said. Demand for LNG vessels may climb 75 percent to 1.4 million tons, the ministry said.
Orders for bulk carriers may drop 43 percent to 7.8 million tons this year amid concerns of oversupply, the ministry said.
The worldâ€™s top six shipyards, all based in South Korea, are aiming to win $50.1 billion worth of orders this year, higher than the $37.6 billion they received in 2010, the ministry said. The yards include Daewoo Shipbuilding & Marine Engineering Co., Hyundai Samho Heavy Industries Co., Hyundai Mipo Dockyard Co. and STX Offshore & Shipbuilding Co.
Hyundai Heavy gained as much as 1.3 percent to 499,000 won, the highest intraday price since November 2007, and traded at 496,500 won as of 12:21 p.m. in Seoul. Samsung Heavy climbed as much as 4.9 percent to 42,000 won.
Editors: Dave McCombs, Garry Smith/Bloomberg Business Week