On October 3, 2014, OPEC refused to cut oil production, and the price of oil fell sharply from $100 a barrel to $60 a barrel. European tanker carriers also saw their share prices rise three to six times as the price of tankers increased by five times right after oil prices plummeted.
As the IMO environmental regulations went into effect in January of this year, the oil refining industry is whistling for a large order of low sulfur oil, the shipping industry is apparently nervous about rising oil costs.
Critics point out that demand for LNG tankers is improving. If the bulk carrier, the flagship of the Chinese shipbuilder with low value-added vessels, also introduces the LNG-powered system, the Korean shipbuilder has secured a competitive edge in winning orders.
Following mega container ships and bulk carriers, the VLCC is also adopting LNG fuel. COSCO Schipping Energy Transformation has decided to change its design to LNG fuel specifications for one of the four new VLCCs that have already been placed.
Although the global shipbuilding orders fell by about 38 percent in 2019 compared to 2018, South Korean shipbuilders’ orders accounted for about 41 percent of the total, maintaining the top spot in the world, the data showed.
Experts have suggested that the recovery in the global market for new ship orders will not be noticeable again this year. Analysts say which alignment will be suitable for future environmental regulations because the owners have yet to find an answer.
Experts predicted that the size of the global LNG carrier fleet will reach up to 800 ships over the next six years. In particular, it explained that the supply of liquefied natural gas will increase between 2023 and 2027, and demand for LNG carriers will surge during the period.
European tanker ships are showing discriminatory competitiveness as they increase ship orders to Korean shipyards, and based on their competitive edge, additional ship orders will be increased for Korean shipyards.
OEC, a Norwegian stock market-listed shipper, is quickly recovering its investment in scrubber related to the super-large VLCC, a report showed Tuesday. It believes that the 10-year-old Scrubber VLCC has only five months to recover investment.
Russia’s state-run energy company Novatek will be able to place orders for up to 47 LNG carriers for its LNG development projects by 2030. The prices of the new ships are estimated to be around $14.1 billion.
Amid stagnant new orders for LPG carriers, industry watchers say the LPG shipping market could enjoy a boom due to a lack of supply of ships. In particular, Korea is in an advantageous position, and Hyundai Heavy Industries and Sejin Heavy Industries will benefit.
DSME has expanded its submarine production facilities as a first step toward securing extreme competitiveness in survival this year and has started to improve productivity in earnest. Therefore, the 3,000-ton submarine will be able to be built in a stable manner for more than a decade.