S. Korean shipbuilders surpass annual targets on brisk new orders

(Daewoo Shipbuilding & Marine Engineering Co.)

(Daewoo Shipbuilding & Marine Engineering Co.)

South Korea's major shipbuilders have outpaced their annual order targets backed by brisk global new orders, company officials said Tuesday. According to data provided by global market researcher Clarkson Research Service, global new orders for ships came to 37.54 million compensated gross tons (CGTs) in the January-September period, up nearly threefold from 13.22 million CGTs a year ago.Compared with 10.53 million CGTs in the same period of 2016, when the shipbuilding industry was in a fierce slump, the global new orders rose 3.6 times. The growth in the new orders stemmed from a surge in new orders for container carriers in the first nine months, which rose more than sixteenfold from the same period a year earlier."A surge in new orders for container carriers was attributable to shippers' preemptive preparation for environment regulations by the IMO," Yang Jong-seo, a researcher at the Korea Eximbank Overseas Economic Research Institute, told Yonhap News Agency by phone. The International Maritime Organization (IMO) aims to cut carbon dioxide emissions from international shipping by more than 30 percent by 2025 and by at least 50 percent by 2050, compared with 2008. Yang also said it will take two or three years for the shipbuilders to make profits from their recent remarkable new orders as most of the vessels will be delivered in two or three years. Despite the recent strong new orders, the shipbuilders may see lackluster e....

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