South Korean media: Global shipbuilding boom benefits China the most!
On June 15, South Korea's *Herald Economic* published an article stating that China has become the biggest beneficiary of the global shipbuilding boom. Chinese shipyards have secured nearly 70% of orders from global shipping companies. Furthermore, this share is expected to grow further, encompassing high-value-added vessels.
Data shows that in April, the total volume of new shipbuilding orders worldwide reached 6.49 million CGT, comprising 204 vessels.
Chinese shipyards received orders for 4.37 million CGT and 156 vessels, capturing a market share of 67%. South Korea secured orders totaling 1.05 million CGT and 33 vessels, with a mere 16% market share—creating a staggering gap of 51 percentage points.
In March, China’s and South Korea’s market shares stood at 55.8% and 36.7%, respectively. Entering April, China intensified its pursuit of orders. Based on cumulative data from January to April, China obtained orders for 18.52 million CGT and 624 vessels, achieving a dominant market share of 71%. South Korea secured orders for 4.73 million CGT and 123 vessels, with a market share of 18%.
By the end of April, the global backlog of ship orders amounted to 194.18 million CGT. Of this, China’s shipbuilding industry held a backlog of 124.25 million CGT, accounting for 64% of the global total. This represents an increase of 22.11 million CGT compared to the same period last year and a rise of 1.01 million CGT from the previous month.
South Korea’s order backlog stood at 37.02 million CGT, representing 19% of the global total. This marks an increase of 1.54 million CGT compared to the same period last year and a rise of 0.62 million CGT from the prior month.
With improving market conditions, South Korea’s shipbuilding industry is adopting a selective order strategy focused on large vessels and high-value-added ship types. Chinese shipyards have already established strong positions in the tanker and bulk carrier markets. Since the beginning of this year, they have primarily secured container ship orders from domestic shipowners. Analysts predict that Chinese yards will further expand into areas such as liquefied natural gas (LNG) carriers. Chinese shipbuilders still possess ample capacity to construct more vessels.
A South Korean shipbuilding industry insider said: “Shipowners seem inclined to place orders with China, where production capacity is relatively abundant, because they prefer shipyards capable of timely delivery. China’s ample shipbuilding capacity may be one key reason behind the widening gap in order volumes between China and South Korea.”
Original source: toutiao.com/article/1868066560595980/
Disclaimer: The views expressed in this article are solely those of the author.