South Korean yards cut delivery times as efficiency improves
SOUTH Korea’s largest shipbuilding group and its subsidiary yards are shortening manufacturing processes, thanks to the advanced productivity of foreign shipyard workers, improved automation and increased investment in facilities.
In a stock market filing, HD Korea Shipbuilding & Offshore Engineering said the four containerships ordered by an undisclosed Asian carrier from HD Hyundai Samho in September 2024 — valued at Won674.6bn ($497m) — now have an earlier delivery date.
Originally scheduled for May 2027, delivery has been brought forward to November 2026.
Prior to that, HD Hyundai Heavy Industries announced the delivery of two very large gas carriers, worth Won310.1bn and ordered by a Middle Eastern shipping company in January 2024, had been brought forward to August 2027 from November 2027.
An HD Hyundai official told Lloyd’s List: “The efficiency of foreign shipyard workers is rising quickly and automation is increasing.
“These factors are stabilising the situation. Faster delivery due to shorter processes means more capacity at the dock, allowing us to handle more volume.”
The moves come after South Korean shipyards saw new orders decline 35% in cgt terms in the first five months of the year, amid an overall slowdown in the newbuilding market. However, their combined market share globally has increased, buoyed by tailwinds from the US port charges plan that adversely affect their Chinese competitors.
In April, HD KSOE reported that productivity among foreign workers had improved by around 8% compared to the previous quarter. “All three of our shipbuilding subsidiaries are undergoing the same stabilisation process,” the company said.
According to Korea Eximbank, South Korean shipbuilders’ output in the first quarter of 2025 reached 3m cgt, up 7.3% year on year. Improved work proficiency among foreign workers at key shipyards was cited as a key contributor to this productivity increase.
On advances in automation, HD Hyundai has been promoting its Future of Shipyard project since 2021.
The initiative aims to create an intelligent, autonomous shipyard with minimal human intervention by integrating digital technologies such as data analytics, virtual and augmented reality, robotics, automation and artificial intelligence.
HD Hyundai expects productivity to rise by 30% and shipbuilding time to fall by 30% by the project’s completion in 2030.
Facility investment has also enabled earlier deliveries. SK Securities analyst Han Seung-han told Lloyd’s List.
“The second dolphin berth, completed in July 2024, has reportedly helped increase productivity at HD Hyundai Samho,” he said.
The dolphin berth consists of pillars installed in the sea to form a pathway, allowing ships to berth on both sides and enabling up to 18 vessels to dock simultaneously.
Han noted that expanding berthing facilities alleviated process bottlenecks, ultimately allowing for earlier deliveries.
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