Massive new build order

7th June 2006, 15:42
Press release today -

Samsung Heavy Gets $1.5 Billion Order for 14 Ships (Update3)
June 7 (Bloomberg) -- Samsung Heavy Industries Co., the world's third-largest shipbuilder, said it received orders for 14 container ships worth $1.5 billion from three companies including Panama's Naviera Daniela SA and Greece's Danaos Shipping Co.

Samsung Heavy will deliver the ships by November 2009, the Seoul-based company said in a regulatory filing to the Korea stock exchange today. The third company, based in Germany, asked not to be identified, Samsung Heavy spokesman Yoon Jong Duk said by phone in Seoul.

Samsung Heavy, Hyundai Heavy Industries Co., and other shipyards in South Korea, home to the world's largest, are set to deliver a record number of new vessels this year, after shipping lines increased orders to benefit from booming global trade and preempt tougher safety regulations.

The orders today raise Samsung Heavy's total for the year to date to $6.9 billion, 90 percent of its 2006 target, Yoon said. The company's shares fell 1.4 percent to 21,150 won at the 3:00 p.m. close of trading in Seoul. They are up 19 percent this year compared with an 8.2 percent drop in the benchmark Kospi Index.

South Korean shipbuilders' order backlog stood at a record 3.79 million compensated gross tons, or 1,031 vessels, valued at $77.2 billion at the end of March, according to the country's Ministry of Commerce, Industry and Energy. That's enough to keep them busy until early 2009.


The country's shipyards delivered 2.84 million compensated gross tons in the three months to March 31, 21 percent more than a year earlier. The companies are expected to deliver about 2 million compensated gross tons every quarter this year.

Samsung Heavy posted an operating profit, or sales minus expenses and the cost of goods sold, of 15.7 billion won in the first quarter compared with an operating loss of 36.2 billion won a year earlier. Hyundai Heavy, based in Ulsan, posted a 167.9 billion won operating profit in the same period. It made an operating loss of 74.2 billion won in the year-earlier period.

Seoul-based Daewoo Shipbuilding & Marine Engineering Co., the world's second-largest shipbuilder, narrowed its operating loss in the quarter to 141.5 billion won from 151.6 billion won a year earlier.

The three South Korean shipyards last week announced orders for 10 liquefied natural gas carriers from Qatar Gas Transport Co. totaling 2.4 trillion won.

More for the backlog....makes me wonder how that actually do it and make anything.


7th June 2006, 16:06
MSC are strongly rumoured to be behind most of these orders. They are also believed to have taken up to 8 ultra post-panamaxes (abt. 9700 teu) at HHI and DSME (4 each). CMA-CGM are understood to have secured another 4 similar ships at DSME. Between them, in the last few days, they have basically secured most of the remaining large shipbuilding capacity in Korea for 2009.


7th June 2006, 16:18
By God, when you think they'll be built by 2009..!!

The shipping press are still talking about 8000TEU vessels...and this lot are apparently ordering vessels up to 9700TEU..?!!

Seems like the future of the shipping world will be ports where a container ship leaves and the berth will be taken by a city sized "cruise liner", who then departs for the next Container ship to dock...!

How long before the first Fast Craft container service..?
Too horrifying to think of...


7th June 2006, 16:50
The 'Fast Ship' container idea was mooted long ago and was still being talked about until a couple of years ago. However, it was always going to be a very expensive project and there were too many doubts that it would be economically viable. Consequently, no-one would stump up the money to get it going and it died.


8th June 2006, 07:05
Agree Phil,
When you look at the Sea-Land greyhounds, and SeaTrain "Euro's and Asia's" of the early seventies their TEU capacity could almost be classed as Feeder Carriers by todays standards (esp. SeaTrain ships).
With the price of oil today..which will never go down appreciably because of China's insatiable demand, bigger seems to be better..i.e.10/12,000TEU range, certainly not faster.
David D.