World Demand for High Value-Added Vessels Increase


The new orders gained by China shipbuilding industry in 2010 worth USD 36.3 billion, accounted for 38% of the global market exceeding the 37% taken by South Korea. From January to September 2011, the China’s new orders fell by 40% and the new orders obtained by South Korean shipyards valued USD 43.6 billion regaining its first place in the world.

Japanese and South Korean companies are directed towards high value-added ships, especially seismic vessel, drillship, FPSO and LNG Carrier. The long-term instability in the Middle East and the increasing scarcity of oil resources in shallow water are affecting the increase in demand for these vessel types.

90% of the orders for seismic vessels, usually priced at more than USD 600 million, are obtained by South Korean companies, the rest belongs to Japanese companies.

South Korean companies have been dominating the drillship market. Samsung Heavy Industries established Estaleiro Atlantico Sul (EAS) with local construction giants Queiroz Galvao and Camargo Correa. Petrobras recorded an order for seven drillships with EAS in February 2011, with a contract value of approximately USD4.63 billion, what accounts for the largest drillship project ever. Samsung Heavy Industries has more than 60% of drillship orders.

It has been anticipated that in late 2012 or early 2013, China shipbuilding industry will face a severe crisis. The global dry and bulk cargo and container shipping markets will see a downturn and severe excess capacity till 2016.


Posted on December 23, 2011, in Asia, Drillship, MARINE VESSELS, Middle East, South Korea and tagged , , , , , , , , , , , , . Bookmark the permalink. 1 Comment.

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