Shipbuilding orders on the rise as recovery spurs demand

Shipbuilding orders may touch the highest level since 2008 keeping pace with global economic recovery, according to estimates released by South Korea's industrial ministry.

New vessel contracts will probably rise 4 per cent this year to 35 million compensated gross tons, the highest since 2008. The rise in orders will be led by container and LNG carriers, South Korea's Ministry of Knowledge Economy said.

The tonnage total would also be the most since 2008, when it was 47.1 million tons, according to Clarkson Plc, the world's largest shipbroker.

According to the ministry's estimate, Hyundai Heavy Industries Co and Samsung Heavy Industries Co., the world's two biggest yards, and their four largest rivals will probably win 33 per cent more orders this year.

 ''We are forecasting an optimistic outlook for container ships and offshore projects this year,'' the industrial ministry said in the statement. ''Shipping rates for the container sector are expected to maintain a gradual increase this year.''

Contracts for container ships may almost double to 6.7 million tons this year as global box shipping volume is expected to grow 10 per cent, the ministry said. Similarly, demand for LNG vessels may climb 75 per cent to 1.4 million tons, the ministry said.