No more supercycles: Hyundai Heavy Industries

No more supercycles: Hyundai Heavy Industries

The glory days of the supercycle that saw ship orders spiral from 2004 to 2008 will never return, the world’s largest shipbuilder has said in an internal newsletter.

Hyundai Heavy Industries (HHI) expanded massively in the previous decade taking advantage of shipping’s so called supercycle, led by Chinese consumption of raw materials. It now reckons there will never be a supercycle for new ship orders like it again.

HHI, like all leading Korean shipbuilders, has now entered a painful period of creditor enforced restructuring, looking to shave off $3bn of assets in the process.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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