Containers and LNG carriers are the most popular vessels on order in South Korea, with 263 containerships and 249 LNG vessels currently being built in the Asian country, says VesselsValue, noting that Greece ranks first within the South Korean orderbook.

Tankers ranked third with a total of 135 being built at South Korean shipyards and LPG carriers are in fourth place with 67 vessels. LNG carriers are the most valuable sector on the South Korean orderbook, worth $34.2 billion.

According to VesselsValue, the LNG carriers sector has seen extraordinary increases in values over the last two years, with values exceeding record highs at the end of the third quarter of 2022 and continuing to rise since then.

South Korea’s majority orderbook being fitted with dual fuel engines

The contract price of a newbuild Large LNG vessel of 174,000 cbm, has risen by c. 26.37% since October 2021, skyrocketing from $203.83 million to $257.74 million. Since October 2021, there have been 285 LNG vessel orders globally, which equates to 27.4% of the live fleet.

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 $190 billion.

VesselsValue also says that 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 $18.99 billion.

Sea Traders have the largest orderbook in terms of volume, in accordance with VesselsValue analysis, with 22 panamax bulkers on order, followed by Evalend Shipping with 21 vessels on order including 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 $17.1 billion, while Japan is in third place with 84 vessels on order, worth $15.58 billion.

Of the vessels on order in South Korea, approximately 63% are being fitted with dual fuel engines, with a market value of $99.58 billion, in a push to meet the latest targets set by the IMO.

All vehicle carriers on order in South Korea are dual fuel, while 43 LPG dual fuel vessels have been contracted, equating to c.63% of the South Korean orderbook. Approximately 56% of the container orderbook or 147 vessels will be built as dual fuel, with a market value of $24.39 billion.

VesselsValue adds that 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.

South Korea’s majority orderbook being fitted with dual fuel engines

In addition to the vessels on order in South Korea, NYK Line has a further 32 vessels on order in Japanese and Chinese yards, including additional LNG vessel orders, bulkers, containers, LPG and vehicle carriers.

Global Meridian Holdings are in second place with a total of $6.07 billion on order and a total of 23 vessels built at South Korean yards, all Large LNG vessels, and Evergreen Marine Corp ranks third with a total orderbook value of $5.9 billion. Evergreen’s 34 vessels on order are all new panamax containers of 15,000 – 15,500 teu.