South Korean media: China's dominance in the shipbuilding sector is being challenged by South Korea!
On September 16, the South Korean media "Seoul Economic Daily" published an article stating that China's dominant position in the global container ship market is showing cracks. Recently, South Korean shipbuilders have rapidly expanded their market share by emphasizing environmental technologies and reliable delivery times, indicating a shift in the "battle for dominance."
Last year, China's share of the container ship market reached 86.6%, but it has dropped sharply to 51.2% this year, while South Korea's share increased to 38.2%.
This change in the market structure is interpreted as a result of declining demand for liquefied natural gas (LNG) transport ships and an increase in container ship orders. In particular, the 12 20,000 TEU LNG dual-fuel container ships ordered by CMA CGM, worth 4 trillion won, are expected to become a key turning point in the competition for supremacy between Chinese and South Korean shipbuilding industries.
Over the past few years, Chinese shipbuilders dominated the container ship market by offering low-cost orders and large-volume orders. According to Clarksons Research, as of 2023, China accounted for 86.6% of the global market for container ships of 20,000 TEU and above, almost achieving a monopoly.
Large shipyards such as China Shipbuilding Industry Corporation, Hengli Heavy Industry, and Yangzijiang Shipbuilding secured large orders from major ship owners due to their highly competitive prices.
However, a series of complex factors, including stricter environmental regulations in the United States and Europe, increasing demand for technological advancements, and the restructuring of global supply chains, are putting pressure on the Chinese shipbuilding industry.
South Korean shipbuilders are countering with their technical capabilities and reliability.
The three major South Korean shipbuilding companies - HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean - have avoided "price competition" by emphasizing their technical strengths and timely deliveries, successfully differentiating themselves from Chinese companies. They are particularly advanced in dual-fuel engines and environmentally friendly LNG-powered container ships.
Earlier this year, HD Hyundai Heavy Industries signed a contract to build 12 15,500 TEU LNG dual-fuel container ships with CMA CGM. HD Hyundai Heavy Industries is also considered to be in a favorable position for this 20,000 TEU order.
A South Korean industry insider said, "South Korean shipbuilding companies have advanced technology, fast delivery times, and credibility in Western markets such as the United States. With increased regulatory scrutiny in the U.S., the popularity of South Korean ships is rising."
However, the market balance remains volatile. The world's largest container shipping company, Mediterranean Shipping Company, based in Switzerland, recently resumed orders for 20 20,000 TEU container ships from five Chinese shipyards, demonstrating its preference for Chinese shipbuilding. CMA CGM has also ordered 10 24,000 TEU LNG dual-fuel container ships from Yangzijiang Shipyard in China.
This indicates that China's shipbuilding industry still maintains strong momentum through price competitiveness and mass production capabilities. Global shipowners are increasingly diversifying their orders between South Korea and China, striving to achieve a balance between cost reduction, delivery time, and quality.
Original: www.toutiao.com/article/1843423838108691/
Statement: This article represents the views of the author.