Shipbuilding orders received by Japanese companies in 2000 surged 66.7 percent from the previous year to total 14.56 million tons, the largest volume since 1973, when the first oil crisis hit the industry, the Japan Ship Exporters' Association said Wednesday.
The figure is not a sign of the revival of the glory days of Japanese shipbuilders, an association official said, but simply the fact that "South Korean shipbuilders have received orders to their capacity limits, making remaining orders go to Japan."
Japanese shipbuilders received orders for 301 ships in 2000, including 47 cargo vessels and 69 tankers, up from 14 cargo ships and 27 tankers in 1999.
With their advantage of low wage costs, South Korean shipbuilders can take orders at lower prices. In 2000, South Korean shipbuilders received orders for more than 20 million tons, resisting the challenges by their Japanese counterparts for the second straight year.
While the weak yen is a positive factor for Japanese shipbuilders, an increase in orders received does not lead to profits unless ship prices are raised, an association official said.