Newbuilding
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.
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
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
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
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
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
LNG Bunkering
Bureau Veritas classifies three LNG bunkering vessels
The first is an 18,600 m3 vessel for Ibaizabal Group at Hudong Zhonghua, and the second and third are 18,000 m3 vessels for Hercules Shipping, shipping arm of Peninsula, at Hyundai Mipo Dockyard.
Bureau Veritas Marine & Offshore (BV) on Tuesday (3 December) announced the classification of three new LNG bunker vessels, including one 18,600 cubic metre (m3) vessel for Ibaizabal at Hudong Zhonghua and two 18,000 m3 vessels for Hercules Shipping, shipping arm of Peninsula at Hyundai Mipo Dockyard, which will be delivered from 2026.
“The vessels further BV’s collaboration with world-leading shipbuilders, charterers and yards on major LNG projects, supporting the maritime industry as it transitions to the use of more sustainable fuels,” it said on its website.
The new vessels join a list of 18 BV-classed LNG bunkering vessels in service, with four more scheduled for delivery in 2025 and 2026. They add to the important supply of LNG as fuel and help ensure shipbuilders and operators remain compliant and on course to meet global emissions targets.
BV has now classified around 35% of the world’s bunkering ships in service and approximately 50% of the order book to date.
While LNG remains an essential part of the current maritime energy landscape, methanol and ammonia are increasingly viewed as a fuel that could accelerate decarbonisation efforts. BV is already leveraging its expertise in LNG to facilitate the industry's shift to other clean fuels, exploring how lessons from LNG can be applied to methanol and ammonia’s production, transport, and eventual use as a maritime fuel.
Bureau Veritas has supported developments that will pave the way for the broader uptake of ammonia as a fuel on land and at sea. It recently granted an Approval in Principle (AiP) to Dalian Shipbuilding for its liquid ammonia bunkering vessel design and partnered with Hanwha Ocean and Naftomar on a joint development project to develop large ammonia carriers with an ammonia fuel-prepared design.
On methanol projects, BV is also actively involved in a selected class of several bunkering tankers in Europe and Singapore and numerous methanol fuel projects, mainly in chemical tankers and container ships.
Photo credit: Peninsula and Ibaizabal
Published: 5 December, 2024
Newbuilding
Maersk orders 20 LNG dual-fuel boxships from Chinese and South Korean shipyards
Firm signed agreements with three shipyards – Yangzijiang Shipbuilding in China, Hanwha Ocean in South Korea and New Times Shipbuilding in China – to build the vessels with capacity of 300,000 TEU.
Alternative Fuels
DNV: Alternative-fuelled newbuilding orders slow down in November
Although results show a slowdown of new orders for alternative-fuelled vessels in November, this follows the strongest month ever in October and the overall trend remains strong, says Jason Stefanatos.
Latest figures from classification society DNV’s Alternative Fuels Insight (AFI) platform saw that a total of 27 new orders for alternative fuelled vessels were placed in November 2024.
LNG continues to be the main driver, accounting for 23 vessels, with most of these (15) coming from the container segment. A strong month also for the car carrier segment, with six new LNG-fuelled vessels added to the orderbook.
Four new orders for ammonia-fuelled vessels were also registered.
Although this was a slightly slower month for new orders for alternative-fuelled vessels, it follows a record-breaking month in October, and a strong surge in activity since the summer months.
Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “Although these results show a slowdown of new orders for alternative-fuelled vessels in November, this follows the strongest month ever in October, and the overall trend remains strong.
“LNG remains the headline story with exceptional activity since the summer months. This is clearly being driven by the container segment, where the vast majority of new orders in 2024 have been for alternative-fuelled vessels.”
Related: DNV: October marks strongest month ever for alternative-fuelled newbuild orders
Photo credit: DNV
Published: 3 December, 2024
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