The order backlog held by South Korea's top three shipbuilders has dropped to the lowest level in almost 13 years in July amid an industry-wide slump, data showed Tuesday.

According to the data compiled by global research firm Clarkson Research Services, the combined order backlog by Hyundai Heavy Industries Co., and two other local rivals stood at 23.87 million compensated gross tons as of end-July, the lowest since November 2003 when the comparable figure was 23.51 million CGTs.


Chinese shipyards held a combined 36.04 million CGTs at the end of last month, the largest. Japan ranked third with 22.13 million CGTs, the data showed.

The global shipbuilding order backlog stood at 98.18 million CGTs as of end-July, the lowest since February 2005.

In July alone, Hyundai Mipo Dockyard Co. received an order to build a ship worth 20,000 CGTs, the data showed.

In the first seven months of the year, South Korean shipyards have clinched a combined 860,000 CGTs, to grab an 11.9-percent share. During the cited period, Chinese and Japanese players grabbed shares of 38.3 percent and 13.6 percent with 2.77 million CGTs and 990,000 CGTs, respectively, the data showed.

Analysts say the problem is that local shipyards are unlikely to win massive new orders down the road, which would further reduce their order backlog.

The shipbuilding industry, once regarded as the backbone of the country's economic growth and job creation, has been reeling from mounting losses caused by an industry-wide slump and increased costs.

The big three shipyards racked up a combined net loss of 7.7 trillion won ($6.95 billion) last year, marking the first time that all three of the nation's largest industry players registered losses. (Yonhap)