Korea shipbuilders face LNG carrier price squeeze as North America orders seen next year

Some in the shipbuilding industry are voicing worries that the liquefied natural gas (LNG) carrier market has peaked and is set to cool. Freight rates for LNG carriers are falling, and new order prices are coming down amid competition with China. LNG carriers are the flagship high-margin vessel type where Korean shipbuilders have shown strength.

Others say the boom in the LNG carrier market is not over yet. Korean shipbuilders are counting on orders from LNG liquefaction projects in North America. They expect related orders to kick into gear in the United States and Canada starting next year.

Pushed into low-priced orders amid competition with China According to the shipbuilding industry and Clarksons Research on the 10th, 76 large LNG carriers of 174,000-cubic-meter class (cargo tank capacity) or bigger were ordered from January through October this year. By country, Korea won 44 ships (57.9%) and China won 32 (42.1%).

This year’s LNG carrier orders roughly doubled from a year earlier, but demand has shown signs of slowing in the second half. Large LNG carrier orders totaled 59 ships in the first half but came to 17 through October in the second half.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →