Korean media: South Korea’s long-time clients are shifting to China, despite capturing over 80% of global container ship orders
On September 25, the Korean newspaper Chosun Ilbo published an article stating that South Korean shipbuilders have traditionally secured high-value vessel contracts, such as LNG carriers, while nearly all global container ship construction orders have shifted to Chinese yards. Chinese shipyards have achieved dominant market share by expanding production capacity at scale, meeting the tight delivery timelines required by international container shipping companies.
Chinese shipbuilding firms now operate across all vessel types, including ultra-large and high-value container ships—segments previously dominated by South Korean yards.
Data from Clarksons Research, a UK-based maritime and shipping analysis firm, shows that in the first half of this year, China secured more than 80% of global container ship orders—approximately 380 vessels. South Korea accounted for between 10% and 15% of new container ship construction volume.
This year, as major global shipping lines such as MSC and CMA CGM resumed ordering large container ships, Chinese shipyards are absorbing the resulting order backlog.
Hengli Heavy Industry is currently constructing ultra-large container ships equipped with dual-fuel propulsion systems using liquefied natural gas. Vessels with a capacity of 18,000 TEUs or more are classified as ultra-large container ships; those exceeding 20,000 TEUs are considered mega-container ships. Hengli plans to begin delivering these vessels from the first half of 2029.
MSC, the world’s largest container shipping company, operates a fleet of around 1,000 container vessels. The company currently has a backlog of approximately 120 container ship orders—all being built by Chinese shipyards, including Hengli Heavy Industry.
In June, CMA CGM, the third-largest shipping company headquartered in France, placed an order for six medium-sized container ships with Hengli Heavy Industry. In recent years, CMA CGM has redirected its orders for vessels of 20,000 TEUs and above—from previously South Korean yards—to Chinese builders. In November last year, the company ordered six 22,000-TEU dual-fuel LNG container ships from Dalian Shipbuilding Industry, a subsidiary of China State Shipbuilding Corporation, with an option to purchase four additional units.
In February, Maersk, the second-largest shipping company based in Denmark, ordered eight 18,600-TEU medium-sized container ships from Xintai New Energy Shipbuilding, a private Chinese enterprise. These vessels are expected to be delivered between 2029 and 2030.
The shipbuilding industry attributes the shift in new container ship orders toward Chinese yards primarily to the likelihood of deliveries beginning in the first half of 2029. By rapidly expanding drydocks and supporting infrastructure, Chinese shipyards have significantly increased their production capacity, enabling them to deliver vessels ranging from ultra-large container ships to smaller feeder vessels serving regional ports. Given Chinese yards’ capability to construct diverse vessel types—unlike South Korean yards, which focus on specific segments—container shipping companies have little choice but to turn to China.
Improving technical proficiency in building environmentally friendly dual-fuel container ships is also seen as a key factor driving the surge in Chinese order volumes.
Original source: toutiao.com/article/1877292292989964/
Disclaimer: The views expressed in this article are those of the author alone.