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Korean Shipbuilders' Unsold Newbuilds

August 19, 2012

Korea's leading shipbuilders post declining profits in second quarter 2012, as well as a growing inventory of unsold vessels.

Shipbuilders here have put unsold ships up for resale at below-market prices but are struggling to get them off the hands, reports the 'Korea Times'.

In June, DSME said it was scrambling to find takers for two 320,100 deadweight tonnage (DWT) crude carriers, after Taiwan’s Today Makes Tomorrow (TMT) withdrew the orders for the ships it made for in 2007.

STX Offshore and Shipbuilding has recently put up for resale three 57,000-DWT bulk carriers as Greece-based shipping company Trojan Maritime gave up its ownership prior to delivery. Each ship is up for grabs at $25 million, down 40 percent from its initial price of $40 million, according to STX.

Some analysts expect more vessels will be put up for resale.

“Given that major orders for shipbuilding come from Europe, the number of contract cancellations and postponed deliveries could increase further,” said Hong Sung-in, a senior researcher at Korea Institute for Industrial Economics and Trade.


 

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