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SAFETY4SEA

Chinese shipbuilders antagonize S. Korean shipyards

by The Editorial Team
December 4, 2017
in Shipping
chinese shipbuilders

Above image is used for illustration purposes only

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Hyundai Heavy Industries Co., after orders placed by South Korean shipping lines, is set to build 17 out of 27 very large ore carriers, while Chinese shipbuilders have been or are about to be awarded contracts for the construction of the remaining ships. 

After securing Brazil-based Vale’s iron ore shipment orders, shipping companies have agreed with South Korean and Chinese shipbuilders, something that can cause damage to the ship building industry, Yonhap reports.

Namely, Hyundai Heavy will deliver over 15 325,000 ton vessels to South Korean, Polaris Shipping Co., in the coming years.

In addition, Hyundai Heavy agree with Korea Line Corp., for the construction of two very large ore carriers for the shipping company. 

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Out of the remaining 10, PanOcean Co. has placed ordered six very large ore carriers from a Chinese shipbuilder for six very large ore carriers. 

South Korean shipyards were damaged because of a decrease in demand for new ships, due to slow global economic growth, and low crude and gas prices in the past years. 

Concluding, Yonhap notes that these developments show the ability of Chinese shipbuilders to win orders from South Korean shipping and build very large ore carriers. 

Tags: ChinashipbuildingSouth KoreaVLOC

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