LNG Carrier Prices Fall to $245 Million, Threatening Korean Shipbuilders’ Margins

Prices for high-value vessels, including liquefied natural gas (LNG) carriers and ultra-large container ships, have begun to decline despite rising demand. Intensifying competition from Chinese shipbuilders entering the premium vessel market, coupled with their aggressive supply strategies, is putting downward pressure on newbuilding prices.

According to UK-based shipping market intelligence provider Clarksons Research, the benchmark newbuilding price for an LNG carrier stood at $245 million as of Oct. 23, down $3 million from $248 million in October last year. Prices for ultra-large container ships also declined over the same period, from $266.5 million to approximately $242 million. The downturn is particularly notable given that LNG carrier orders have increased more than 4.5-fold year-on-year.

China’s rapid expansion in both shipbuilding capacity and technological capabilities is seen as a major factor behind the price decline. Yangzijiang Shipbuilding, previously focused on medium-sized vessels, has been securing more orders for ultra-large container ships. Hengli Heavy Industries, meanwhile, is targeting the LNG carrier market through a build-first, sell-later strategy, constructing vessels before securing buyers. Jiangnan Shipyard has also intensified price competition by securing LNG carrier orders at $225 million per vessel, undercutting prevailing benchmark prices and challenging South Korean shipbuilders’ market share.

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