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Veson Nautical: Majority of vessels on order in South Korea are being fitted with dual fuel engines 

Approximately 63% of the vessels on order in South Korea are being fitted with dual fuel capabilities, with a market value of USD 99.58 million, says Rebecca Galanopoulos Jones, Content Analyst.

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The following is an infographic analysis by Rebecca Galanopoulos Jones, Content Analyst at Veson Nautical, shared with Singapore-based bunkering publication Manifold Times on the vessels on order in South Korea including the share of dual fuel vessels being built:

South Korean Orderbook Analysis

To mark the start of the KOBC and Marine Money conferences in South Korea, we take a look at the South Korean orderbook, using VesselsValue data. The infographic analyses the breakdown of vessels on order in South Korea, the top ordering nations, the key companies investing in South Korean newbuildings, the most valuable vessels on order and the share of dual fuel vessels being built. 

South Korean Orderbook by Vessel Type

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Containers are the most popular vessel on order in South Korea, with a total of 263 vessels, followed by LNG carriers with 249 vessels, Tankers ranked third with a total of 135 and LPG carriers are in fourth place with 67 vessels.

LNG carriers are the most valuable sector on order, worth USD 34.2 bn. This sector has seen extraordinary increases in values over the last two years with values exceeding record highs at the end of Q3 2022 and continuing to rise since then. The contract price of a newbuild Large LNG vessel of 174,000 CBM, has risen by c. 26.37% since October 2021 from USD 203.83 mil to USD 257.74 mil. Since October 2021, there have been 285 LNG vessel orders globally, which equates to 27.4% of the live fleet. This is due to improved demand fundamentals that have resulted from the ongoing conflict between Ukraine and Russia. Despite a relatively small live fleet of 1,039 vessels, soaring global demand for LNG has sent the values sky high with the fleet value for LNG carriers currently at USD 190 bn. 

South Korean Orderbook by Top Owning Nations

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Of the top owning nations within the South Korean orderbook. Greece ranks first. This is both by number of vessels and total value, comprising of 124 vessels on order and a total value of USD 18.99 bn. Sea Traders have the largest orderbook in terms of volume, with 22 Panamax Bulkers on order, followed by Evalend Shipping with 21 vessels on order including VLGC LPGs, Handy Bulkers, Suezmax and LR1 Tankers and Large LNG vessels. Dynacom Tankers have 19 vessels on order ranging from VLCCs to LR2s. South Korea ranks second with 113 vessels on order and a market value of USD 17.1 Bn. Japan are in third place with 84 vessels on order, worth USD 15.58 Bn.

South Korean Orderbook by Top Five Owners

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NYK Line is ranked first within a list of the top five owners with vessels on order in South Korea, with an orderbook value of USD 7.62 Bn, consisting of 29 Large LNG vessels of 174,000 CBM. In addition to the vessels on order in South Korea, NYK Line has a further 32 vessels on order in Japanese and Chinese yards, this includes additional LNG vessel orders, Bulkers, Containers, LPG and Vehicle Carriers. Global Meridian Holdings are in second place with a total of USD 6.07 bn on order and a total of 23 vessels, all are Large LNG vessels of 174,000 CMB. With a total orderbook value of USD 5.9 Bn, Evergreen Marine Corp rank third.

The 34 vessels on order are all New Panamax Containers of 15,000 - 15,500 TEU. They are followed by MOL in fourth place, with an orderbook value of USD 5.56 Bn, a total of 21 vessels consisting mainly of Large LNG vessels of 174,000 CBM. Eastern Pacific Shipping are in fifth place with a total value of USD 4.85 Bn, the 18 vessels on order in South Korea consist of Containers and LPG carriers. 

It should be noted that CMG CGM have the highest number of vessels on order in South Korea, with a total of 38 Containers vessels, ranging from Sub Panamax vessels of 2,000 TEU to New Panamax Containers of 13,000 TEU and a market value of USD 3.83 mil.

South Korean Orderbook by Dual Fuel engines 

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Of the vessels on order in South Korea, approximately 63% are being fitted with dual fuel capabilities, with a market value of USD 99.58 mil. With the exception of LNG carriers which will always be dual fuel, all Vehicle Carriers on order in South Korea are dual fuel. Within the global orderbook almost all Vehicle Carriers are Dual Fuel spec comprising c.82% of total orders based on 133 ships. This is because the main cargo onboard Vehicle Carriers is factory new OEM (Original Equipment Manufacturer) light vehicles including EVs (Electric Vehicles), and OEMs prefer to transport their light & heavy new vehicles on clean vessels offering lower emission ratings. This has resulted in a higher number of DF ships being ordered by shipowners in the Vehicle Carrier sector relative to other sectors.

The second highest percentage is the LPG sector where 43 vessels dual fuel vessels have been contracted, equating to c.63% of the orderbook. Approximately 56% of the Container orderbook or 147 vessels will be built as dual fuel, with a market value of USD 24.39 mil.      

Summary

In summary, Container and LNG carriers account for the vast majority of vessels on order in South Korea both in terms of volume and market value. Greek owners have been very active in fleet renewal, currently accounting for c.19% of the South Korean orderbook. Thanks to the 29 LNG vessels on order NYK Line are the biggest spenders at South Korean yards but in terms of volume, they are overtaken by CMA CGM who have inked contracts for 38 Container ships. The majority of vessels on order are being fitted with dual fuel engines in a push to meet the latest targets set by the IMO. 

Photo credit: Venti Views on Unsplash / Veson Nautical
Published: 3 November, 2023

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Methanol

Mitsubishi Shipbuilding receives orders for Japan’s first methanol-fuelled RoRo cargo ship duo

Two ships will be built at the Enoura Plant of MHI’s Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

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Mitsubishi Shipbuilding receives orders for Japan's first methanol-fuelled RoRo cargo ship duo

Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries (MHI) Group, on Wednesday (19 June) said it has received orders from Toyofuji Shipping and Fukuju Shipping for Japan's first methanol-fueled roll-on/roll-off (RORO) cargo ships. 

The two ships will be built at the Enoura Plant of MHI's Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

The ships will be approximately 169.9 meters in overall length and 30.2 meters in breadth, with 15,750 gross tonnage, and loading capacity for around 2,300 passenger vehicles.

A windscreen at the bow and a vertical stem are used to reduce propulsion resistance, while fuel efficiency is improved by employing MHI's proprietary energy-saving system technology combing high-efficiency propellers and high-performance rudders with reduced resistance. 

The main engine is a high-performance dual-fuel engine that can use both methanol and A heavy fuel oil, reducing CO2 emissions by more than 10% compared to ships with the same hull and powered by fuel oil, contributing to a reduced environmental impact. 

In the future, the use of green methanol(2) may lead to further reduction in CO2 emissions, including throughout the lifecycle of the fuel. Methanol-fueled RORO ships have already entered into service as ocean-going vessels around the world, but this is the first construction of coastal vessels for service in Japan.

In addition, the significant increase in vehicle loading capacity and transport capacity per voyage compared to conventional vessels will provide greater leeway in the ship allocation schedule, securing more holiday and rest time for the crew, thereby contributing to working style reforms.

Mitsubishi Shipbuilding, to address the growing needs from the modal shift in marine transport against the backdrop of CO2 reductions in land transportation, labor shortages, and working style reforms, will continue to work with its business partners to provide solutions for a range of societal issues by building ferries and RORO vessels with excellent fuel efficiency and environmental performance that contribute to stable navigation for customers.

 

Photo credit: Mitsubishi Shipbuilding
Published: 20 June, 2024

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LNG Bunkering

Mitsubishi Shipbuilding launches LNG-fuelled Ro-Ro vessel “Trans Harmony Green”

Ship’s main engine and main generator engine are high-performance dual-fuel engines each accommodating LNG or diesel fuel.

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Mitsubishi Shipbuilding launches LNG-fuelled Ro-Ro vessel “Trans Harmony Green”

Mitsubishi Shipbuilding Co., Ltd., a Mitsubishi Heavy Industries (MHI) Group company based in Yokohama, Friday (7 June) held a christening and launch ceremony for the TRANS HARMONY GREEN, the first of two LNG-powered roll-on/roll-off (RO/RO) ships under construction for Toyofuji Shipping Co., Ltd. 

The ceremony took place at the Enoura Plant of MHI's Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture. 

The ship's handover is scheduled for late January 2025 following completion of outfitting work and sea trials. The TRANS HARMONY GREEN will serve as a RO/RO vessel on shipping routes in Asia.

Trans Harmony Green vessel

The TRANS HARMONY GREEN is approximately 195 metres in overall length, approximately 30.6 metres in breadth, and has gross tonnage of approximately 49,500. It can simultaneously transport about 3,000 passenger cars. 

The ship's main engine and main generator engine are high-performance dual-fuel engines each accommodating LNG or diesel fuel. 

Together these engines enable a greater than 25% reduction in CO2 emissions compared to ships with the same hull and powered by fuel oil, cutting SOx (sulphur oxides) emissions to near zero, thereby helping to reduce the vessel's environmental footprint.

 

Photo credit: Mitsubishi Shipbuilding
Published: 10 June, 2024

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Ammonia

LR AiP awarded to SDARI for ammonia-fuelled boxship design

Design includes a 73,000 cbm Type C tank ammonia containment system, with the ammonia tank fitted with a dome inside its tank connection space.

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LR AiP awarded to SDARI for ammonia-fuelled boxship design

Classification society Lloyd’s Register on Friday (7 June) said it has awarded Chinese design company Shanghai Merchant Ship Design & Research Institute (SDARI) with approval in principle for its ammonia-propelled 8,200 teu containership design.

Working in partnership with Mediterranean Shipping Co and MAN E&S as part of a joint development project, the design includes a 73,000 cbm Type C tank ammonia containment system, with the ammonia tank fitted with a dome inside its tank connection space. 

The design also features the MAN 6G80-C10.5 -LGIA Ammonia Fuelled Engine, which has a high-pressure selective catalytic reduction (HP-SCR) system and it Tier II/Tier III compliant.

Andy McKeran, LR Chief Commercial Officer, LR, said: “As the shipping industry looks more closely at ammonia as a future fuel option to reduce maritime greenhouse gas emissions, this joint development project between LR, SDARI, MSC and MAN E&S showcases the partners’ technical strengths and capability on containership and ammonia fuel designs.”

Mr Li Xin, Vice Director of SDARI, said: “As a leading ship designer in the maritime industry, SDARI has been focusing on low carbon solutions together with our reliable partners.”

“This JDP is an exciting one and offers a practical solution to the community which will help the fleet to reduce carbon emission significantly, and make shipping sustainable and successful.”

 “As always, SDARI will offer a competitive design and be a trustworthy partner to the industry during the journey to net-zero emissions.”

 

Photo credit: Lloyd’s Register
Published: 10 June, 2024

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