News Content
Korean shipyards shocked as CMA CGM awards shipbuilding deals to China
THE loss of the world's largest containership deals to two Chinese rivals has rocked the South Korean shipbuilding industry, after CMA CGM signed a letter of intent (LOI) with Hudong-Zhonghua Shipyard and Shanghai Waigaoqiao Shipbuilding to build nine 22,000 TEU container ships, according to shipbuilding industry sources.
South Korea's big three shipbuilders - Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering - had all participated in the bid to win the shipbuilding contract that was worth a total of US$1.44 billion, according to BusinessKorea.
An official from the shipbuilding industry was quoted as saying, "South Korean companies had swept large containership deals in the global market but they now feel embarrassment that not only the market of low-end ships but also ultra large and high value-added ships are being eaten into by China."
The deal is to build nine ultra large container ships which have dual-fuel propulsion systems that can operate on either liquefied natural gas or fuel oil.
The unexpected loss to Chinese companies, has raised concerns among South Korea's shipbuilding industry, which is already suffering from a lack of business, that they will keep falling behind Chinese firms in the future.
An official from the shipbuilding industry added: "Even foreign container shippers have admitted that Chinese shipyards' technology and price competitiveness have caught up with Korea. South Korean shipbuilders used to rank first to seventh in the top 10 list. However, only the big three made the top 10 list now with many Chinese and Japanese firms included."
South Korea's big three shipbuilders - Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering - had all participated in the bid to win the shipbuilding contract that was worth a total of US$1.44 billion, according to BusinessKorea.
An official from the shipbuilding industry was quoted as saying, "South Korean companies had swept large containership deals in the global market but they now feel embarrassment that not only the market of low-end ships but also ultra large and high value-added ships are being eaten into by China."
The deal is to build nine ultra large container ships which have dual-fuel propulsion systems that can operate on either liquefied natural gas or fuel oil.
The unexpected loss to Chinese companies, has raised concerns among South Korea's shipbuilding industry, which is already suffering from a lack of business, that they will keep falling behind Chinese firms in the future.
An official from the shipbuilding industry added: "Even foreign container shippers have admitted that Chinese shipyards' technology and price competitiveness have caught up with Korea. South Korean shipbuilders used to rank first to seventh in the top 10 list. However, only the big three made the top 10 list now with many Chinese and Japanese firms included."
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
