[THE INVESTOR] South Korean shipbuilding industry was pushed aside by Chinese and Italian counterparts in the first half, with new orders falling to a record low.

According to industry data released on July 4, local shipbuilders were awarded contracts for 27 merchant ships with a combined compensated gross tonnage of 830,000 in the first half of the year. Compared to last year, local shipbuilders’ first half performance has plunged by 88 percent in terms of CGT.

The first half figure is the lowest on record since related data was first released by UK’s Clarkson in 1996. 

For June, however, Korean shipbuilders fared well, taking the largest chunk of orders placed in that month. According to industry data, South Korean shipbuilders were awarded contracts for 370,000 CGT of the 960,000 CGT of orders placed in June.

This is the first time South Korean shipbuilders have taken the top spot in terms of monthly contracts since October 2015.

Regarding first half figures, Chinese shipbuilders managed to maintain a steady stream of new orders despite a year-on-year dip.

The data showed that Chinese shipyards received orders for 2.42 million CGT of ships, placing China at the top of the industry. It was followed by Italy, whose shipbuilders won orders for merchant vessels with 890,000 CGT.

Overall, orders for 225 merchant vessels or 6.32 million CGT were placed during the first half of the year. The figures for the same period last year stands at 727 ships, with 18.04 million CGT.

By Choi He-suk (cheesuk@heraldcorp.com)