New Delhi [India], June 6 (ANI): South Korean shipbuilders witnessed a decline of 32 per cent on a year-on-year basis in new orders from January to May, according to shipping industry tracker Clarkson Research Services, as reported by the Korea Herald.

During these five months, Korean shipbuilders reported a total of 3.81 million compensated gross tonnage, representing 24 per cent of the global market, second only to China, which led with 7.86 million CGT, or 49 per cent.

This decline was attributed to selective order-taking, as companies like HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries were prioritised as they deal with high-value-added vessels such as liquefied natural gas carriers rather than container ships.

Their docks are currently occupied with orders scheduled for delivery over the next three years.

From a broad perspective, this drop is also a reflection of a sharp downturn in the global shipbuilding market.

Industry sources noted that many shipping companies are delaying new orders amid uncertainties in global trade and falling freight rates, driven in part by ongoing geopolitical tensions between the US and China.

The Shanghai Containerised Freight Index, which measures shipping rates, dropped from over 3,000 in June last year to around 1,200 in May 2025.

Although the index has recently risen, experts believe this is a short-term bump due to temporary US tariff deferrals on Chinese goods.

As a result, South Korean shipbuilders have seen their order backlogs shrink by 8 per cent, or 3.09 million CGT, compared to last year. By early June, HD Korea Shipbuilding & Offshore Engineering had met just 38.7 per cent of its annual order target of USD 18 billion, and Samsung Heavy Industries had reached only 27 per cent of its annual order target of USD 9.8 billion. (ANI)