South Korean shipbuilders, after becoming the world’s leaders on new orders in 2018 on increased demand for LNG ships, are expecting a solid demand for vessels during 2019.
Specifically, local shipyards have won orders to build 60 LNG ships last year, in a time when demand for LNG carriers is steadily increasing.
Namely, for 2019, demand for LNG ships will be solid, with South Korean shipyards winning more deals for this kind of ships. This year’s LNG ship orders will be similar to last year’s, Yonhap news agency reported.
However, as the shipyards are anticipating an increase for LNG ships this year, local shipyards have increase the order target by over 10%. What is more, Hyundai Heavy will attempt to win orders valued at US$11.7 billion, an increase of 15% from 2018.
In addition, Daewoo Shipbuilding & Marine Engineering Co., will try to win $8 billion in deals, a rise of 10%, while Samsung Heavy Industries will try to achieve a 24% increase in this year’s orders worth $7.8 billion.
Commenting on this situation, Yonhap cited Choe Jin-myung, an analyst at NH Investment & Securities, saying that the demand for bulk carriers and container vessels is decreasing because of an economic slowdown and the trade war between the US and China. Nevertheless, their focus on LNG ships will enhance their market share.