Hyundai Heavy Expects Global Ship Orders to Drop for Third Year.
Hyundai Heavy Industries Co., the world"s largest shipbuilder, expects demand for vessels to fall for at least a third year in 2010 as shipping lines pare expansion plans to curb overcapacity. Shipowners may order about 10 million tons of new vessels worldwide this year, Chief Executive Officer Min Keh Sik said in an interview today in Gwacheon, a city near Seoul. That compares with 18.6 million tons last year and 102.7 million tons in 2008, according to figures from Clarkson Plc, the world"s largest shipbrokers.
?There is nothing to expect in terms of new orders until next year,? Min said. ?It will be a slow and marginal recovery.?
Demand for new vessels has plunged since September 2008 after the credit crisis made it harder for shipowners to borrow funds and because the global recession sapped cargo traffic. Owners also have orders outstanding for vessels with a combined capacity equal to about 40 percent of the existing global fleet, according to Clarkson, after signing deals before the slump.
Industrywide demand may grow to 20 million tons next year, followed by an increase to 30 million tons in 2012, Min said.
Hyundai Heavy aims to win $4 billion worth of orders for ships this year, compared with the $444 million it received in 2009. The company, based in Ulsan, South Korea, had a backlog worth $28.1 billion for 241 vessels at the end of January.
Hyundai Heavy, which also makes offshore platforms and wind-power equipment, gained as much as 1.6 percent to 227,000 won and traded at 225,500 won as of 1:49 p.m. in Seoul. The stock has climbed 28 percent in the past year compared with a 55 percent rise for South Korea"s Kospi index.