Chinese Shipyards Dominate Global Orders as Korean Shipbuilders Focus on High Value Projects
SEOUL, Jan. 27 (Korea Bizwire) — In 2024, Chinese shipbuilders dominated the global market, with seven of the top ten shipyards by order volume located in China. This shift reflects a significant change in the shipbuilding landscape, as highlighted by data from UK-based Clarkson Research. The top four shipyards—New Times Shipbuilding, Hudong-Zhonghua Shipbuilding, Yangzijiang Shipbuilding, and Hengli Heavy Industry—are all Chinese.
Hudong-Zhonghua, a state-owned entity under the China State Shipbuilding Corporation (CSSC), has emerged as a leader. Hengli Heavy Industry expanded its capabilities after acquiring the former South Korean facility, STX Dalian, in 2008. South Korea’s Samsung Heavy Industries, Hanwha Ocean, and HD Hyundai Samho ranked fifth through seventh, while the remaining three positions in the top ten were also filled by Chinese firms. This marks a notable departure from previous years when South Korea’s “Big Three” consistently led the rankings.
Strategic Shifts in Shipbuilding
Industry experts attribute the shift in rankings to strategic differences between South Korean and Chinese shipbuilders. South Korean firms, facing over three years of backlogged orders, have opted for selective bidding on high-value vessels, such as liquefied natural gas (LNG) carriers and eco-friendly ships. This strategy has resulted in lower overall order volumes compared to their Chinese counterparts, who focus on volume-based production.
Despite a decline in order volumes, South Korean companies maintain a strong position in backlog rankings. As of January 2025, HD Hyundai Heavy Industries leads globally with 8.93 million compensated gross tonnage (CGT), followed closely by Samsung Heavy Industries with 8.72 million CGT and Hanwha Ocean with 8.49 million CGT.
China’s rise in the shipbuilding sector is supported by government backing, competitive steel prices, favorable exchange rates, and lower labor costs. Additionally, Chinese shipping companies tend to favor domestic shipyards, further enhancing China’s market share. According to VesselsValue, China ranked first globally in ship ownership in 2024.
Experts suggest that South Korean shipbuilders may find new opportunities amid increasing U.S. scrutiny of China’s shipbuilding industry. The Trump administration has been working to impose tariffs on Chinese-made ships, which could limit China’s global influence and create openings for South Korean firms. An industry official noted that the U.S. is seeking partners for construction and maintenance operations, presenting a strategic opportunity for South Korea to strengthen its position in the global shipbuilding market. As 2025 progresses, the competition between China’s volume-driven approach and Korea’s focus on high-value ships will continue to shape the future of the industry.
Source: http://koreabizwire.com/
