PC Vessels Drive Order Performance Of Korea Shipbuilding Industry

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The new shipbuilding price of petroleum chemical product (PC) carriers has reached an all-time high, propelling them to become a major revenue driver. Particularly, PC vessels account for 43 percent of the total order backlog secured by HD Korea Shipbuilding & Offshore Engineering this year, playing a pivotal role in driving overall order performance.

Orders secured 

According to HD Korea Shipbuilding & Offshore Engineering on June 16, Hyundai Mipo Dockyard has consecutively secured orders for four PC vessels, two each from European and Middle Eastern shipping companies on June 5 and June 7, totaling 285.6 billion won (approximately $256.2 million).

The highlight is that the total order amount for PC vessels this time has set a record for the “highest-ever price.” Onex’s unit price for the MR tanker ordered is approximately $54 million (75 billion won), marking a record high. HD Hyundai Mipo previously set a record in March by securing two MR tankers from Pan Ocean at $51.75 million (71.9 billion won) per vessel.

Strong market conditions

The strong market conditions for PC vessels are bolstered by geopolitical risks such as the Russia-Ukraine war and incidents in the Red Sea. The war has redirected the transportation of petroleum and chemical products from land pipelines to sea routes. Additionally, attacks by Yemen’s Houthi rebels have compelled ships to reroute towards Africa and the Cape of Good Hope instead of transiting through the Suez Canal.

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Source: Businesskorea