Daewoo Shipbuilding & Marine Engineering Co., working on the world’s largest container ships, said mega-sized vessels’ greater fuel efficiency will let them withstand a slowdown in overall orders, Bloomberg reports. “Large ships will help shipowners reduce costs, creating a new segment that may be less influenced by how the world economy performs,” Chief Executive Officer Nam Sang Tae said today at a briefing in Seoul. Industrywide orders may be lower in the second half than in the first because of slowing trade and concerns about overcapacity, he said.
Daewoo, the world’s number three shipyards, and larger Korean rivals Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. have moved their focus onto bigger vessels, offshore units and other more sophisticated products as low-cost Chinese yards win deals for cheaper ships. The strategy may help the three yards win annual orders of $30 billion over the next couple of years, BNP Paribas SA said in a note today.
“The shift in order focus toward the super-size container- ship segment has relatively benefited Korean shipyards,” BNP Paribas analyst James Yoon said in the note. Oil prices are also likely to withstand “macro headwinds,” which will spur demand for Korean-made oil rigs, offshore units and other energy- related equipment, he said.
Daewoo Shipbuilding gained 7.2 percent to close at 28,350 won in Seoul trading. Hyundai Heavy, the world’s biggest shipyard, climbed 9.1 percent, the most in about three months, to 349,000 won. Samsung Heavy advanced 5.3 percent to 34,100 won.
Daewoo also expects to win its first order to build a floating production and storage unit for liquefied natural gas in the first quarter of next year, Nam said.
“There will be demand for offshore units and gas carriers to meet energy needs,” he said.
Maersk Order
Daewoo won orders to build 20 vessels able to carry 18,000 containers apiece from A.P. Moeller-Maersk A/S earlier this year. The ships will help the line consume 35 percent less fuel per box than a vessel carrying 13,100 containers.
The price of 380-Centistoke marine bunker fuel, used by ships, has jumped 29 percent this year, and was trading at $655.50 per metric ton on Aug. 26 in Singapore, according to data compiled by Bloomberg. The fuel rose to a record $688.50 per metric ton on Aug. 1.
Shipowners ordered 88 vessels able to carry 8,000 20-foot containers or more in the first seven months, compared with 54 for the whole of last year, according to Clarkson Plc.
Daewoo, the world’s number three shipyards, and larger Korean rivals Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. have moved their focus onto bigger vessels, offshore units and other more sophisticated products as low-cost Chinese yards win deals for cheaper ships. The strategy may help the three yards win annual orders of $30 billion over the next couple of years, BNP Paribas SA said in a note today.
“The shift in order focus toward the super-size container- ship segment has relatively benefited Korean shipyards,” BNP Paribas analyst James Yoon said in the note. Oil prices are also likely to withstand “macro headwinds,” which will spur demand for Korean-made oil rigs, offshore units and other energy- related equipment, he said.
Daewoo Shipbuilding gained 7.2 percent to close at 28,350 won in Seoul trading. Hyundai Heavy, the world’s biggest shipyard, climbed 9.1 percent, the most in about three months, to 349,000 won. Samsung Heavy advanced 5.3 percent to 34,100 won.
Daewoo also expects to win its first order to build a floating production and storage unit for liquefied natural gas in the first quarter of next year, Nam said.
“There will be demand for offshore units and gas carriers to meet energy needs,” he said.
Maersk Order
Daewoo won orders to build 20 vessels able to carry 18,000 containers apiece from A.P. Moeller-Maersk A/S earlier this year. The ships will help the line consume 35 percent less fuel per box than a vessel carrying 13,100 containers.
The price of 380-Centistoke marine bunker fuel, used by ships, has jumped 29 percent this year, and was trading at $655.50 per metric ton on Aug. 26 in Singapore, according to data compiled by Bloomberg. The fuel rose to a record $688.50 per metric ton on Aug. 1.
Shipowners ordered 88 vessels able to carry 8,000 20-foot containers or more in the first seven months, compared with 54 for the whole of last year, according to Clarkson Plc.