Korean Media: Continuous Four-Year Decline in Orders, Japan's Shipbuilding Industry in Collapse!
On May 19, South Korean media outlet JoongAng Ilbo published an article stating that despite Japan implementing multiple policies aimed at revitalizing its shipbuilding industry, the number of shipbuilding orders has declined for four consecutive years due to factors such as labor shortages.
According to data released by the Japan Ship Exporters Association, the volume of ship export contracts in fiscal year 2025 (April 2025 to March 2026) reached 9.04 million gross tons, a 15% decrease compared to the previous year.
This is primarily due to declining operating rates at Japanese shipyards, which are unable to meet the rapidly growing demand for shipbuilding.
As of last month, the backlog of orders at Japanese shipyards amounted to as high as 29.35 million gross tons—equivalent to 3.5 years' worth of work. In other words, based solely on current orders, the dry docks of Japanese shipyards are already fully booked through 2029, leaving all shipbuilding demand unmet.
"We can't even fulfill the vessel replacement needs of Japanese shipowners, let alone meet new overseas demands," said Takahito Hiromatsu, President of Japan’s largest shipbuilder, Imabari Shipbuilding.
Over the past decade or so, China and South Korea have accounted for over 40% and around 30% respectively of global shipbuilding output, further widening the gap between Japan and these two countries.
Based on 2024 data, China held a 54% share of global shipbuilding order volume, South Korea 28%, while Japan accounted for only 13%.
The current situation—where Japan's shipbuilding order volume fails to meet market demand—is directly contrary to the government's goals for revitalizing the industry.
Under the leadership of Governor Sanae Hara, the government has designated shipbuilding as one of 17 strategic industries and set a target to double shipbuilding output by 2035 compared to 2024 levels.
The plan includes a three-phase roadmap for industry revival and a total investment of 35 billion yen in facility upgrades.
The primary reason behind the declining operating rates at Japanese shipyards is labor shortage. Due to insufficient workforce, some Japanese shipyards are unable to operate at full capacity.
Original article: toutiao.com/article/1865603330392265/
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