Lagos — Majority of vessels on order in South Korea are being fitted with dual fuel engines, according to VesselsValue analysis of vessels on order in the east Asian country.
VesselsValue, a leading online valuation and market intelligence provider for the maritime industries, said the majority of vessels on order are being fitted with dual fuel engines in a push to meet the latest targets set by the International Maritime Organization, IMO
The analysis includes a breakdown of the vessels’ top ordering nations, the key companies investing in South Korean newbuildings, most valuable vessels on order and share of dual fuel vessels being built.
Data from the analysis of the South Korean Orderbook showed that containers are the most popular vessel on order in the country, with a total of 263 vessels, followed by liquefied natural gas, LNG, carriers with 249 vessels. Tankers ranked third with a total of 135 and liquefied petroleum gas, LPG, carriers are in fourth place with 67 vessels.
LNG carriers are the most valuable sector on order, worth USD 34.2 billion, the analysis also showed. This sector has seen extraordinary increases in values over the last two years with values exceeding record highs at the end of the third quarter, Q3, 2022 and continuing to rise since then.
The contract price of a newbuild Large LNG vessel of 174,000 CBM, has risen by c. 26.37% since October 2021 from USD 203.83 million to USD 257.74 million. Since October 2021, there have been 285 LNG vessel orders globally, which equates to 27.4% of the live fleet, according to the VesselValue data.
This is due to improved demand fundamentals that have resulted from the ongoing conflict between Ukraine and Russia. Despite a relatively small live fleet of 1,039 vessels, soaring global demand for LNG has sent the values sky high with the fleet value for LNG carriers currently at USD 190 billion.
Of the top owning nations within the South Korean orderbook, Greece ranks first, both by number of vessels and total value, comprising of 124 vessels on order and a total value of USD 18.99 billion.
Sea Traders have the largest orderbook in terms of volume, with 22 Panamax Bulkers on order, followed by Evalend Shipping with 21 vessels on order, including Very Large Gas Carriers, VLGC, LPGs, handy bulkers, suezmax and LR1 Tankers and Large LNG vessels.
Dynacom Tankers have 19 vessels on order ranging from VLCCs to LR2s. South Korea ranks second with 113 vessels on order and a market value of USD 17.1 billion. Japan are in third place with 84 vessels on order, worth USD 15.58 billion.
“In summary, container and LNG carriers account for the vast majority of vessels on order in South Korea both in terms of volume and market value. Greek owners have been very active in fleet renewal, currently accounting for c.19% of the South Korean orderbook.
“Thanks to the 29 LNG vessels on order, NYK Line are the biggest spenders at South Korean yards but in terms of volume, they are overtaken by CMA CGM who have inked contracts for 38 container ships. The majority of vessels on order are being fitted with dual fuel engines in a push to meet the latest targets set by the IMO”, a statement by VessselValue detailing the analysis said.
