Korean Media: Although South Korea's technology is more advanced, China dominates the green ship market!
On May 8, South Korean media outlet Chosun Ilbo published an article stating that China continues to maintain a leading position in the global green ship market. Although many still believe South Korea leads in technological capability, China is rapidly closing the technological gap thanks to a large number of domestic orders.
Data released by Clarksons Research, a UK-based maritime market analysis firm specializing in shipbuilding and shipping, shows that last year Chinese shipbuilders secured 51.1% (approximately 11.5 million CGT) of orders for alternative-fuel propulsion vessels, while South Korea held 30.9% (about 6.94 million CGT). This is a stark reversal from 2020, when South Korea and China captured 68% and 23.5% of orders respectively.
So far this year, the gap has widened further. As of February this year, South Korea’s share of orders for alternative-fuel propulsion vessels stood at 17.3% (around 2.07 million CGT), far behind China’s 72.4% (approximately 8.69 million CGT). Even when comparing the number of vessels ordered during the same period, China’s order volume (264 ships) was 5.3 times that of South Korea (50 ships).
Alternative-fuel ships refer to vessels powered by energy sources with lower carbon emissions than traditional petroleum-based fuels such as heavy fuel oil and diesel. This category includes liquefied natural gas (LNG)-powered ships, methanol-powered ships, ammonia-powered ships, hydrogen-powered ships, and electric-powered ships.
In 2022, China surpassed South Korea for the first time in the alternative-fuel propulsion ship market, securing 47.9% of orders compared to South Korea’s 46.7%. Since then, China has continued to widen its lead and now holds a dominant position in the market.
In the shipbuilding industry, it is widely believed that South Korea still leads in technological capability. The Korea Institute of Science and Technology Evaluation and Planning (KISTEP) stated that as of the end of last year, South Korea’s technological edge over China was approximately two years.
South Korea’s strengths lie in the rapid commercialization of large-scale LNG-powered ships, as well as methanol and electric propulsion technologies. While China is increasing investment in green ship technologies, its disadvantage remains limited real-world operational experience with these vessels. Additionally, South Korea is considered ahead of China in terms of international certifications and the ability to independently design and manufacture complex equipment.
Meanwhile, the market for alternative-fuel propulsion vessels is expected to keep growing. Due to regulations set by the International Maritime Organization (IMO), the proportion of environmentally friendly vessels in global ship orders is continuously rising. The share of alternative-fuel ships among newbuild orders increased from 32% in 2021 to 45% in 2024.
A South Korean industry insider said: “At the root of China’s rapid rise is its ability to place orders domestically.”
Original article: toutiao.com/article/1864607481655303/
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the official stance of the publisher.