South Korean media report that increased shipping demand linked to the potential closure of the Strait of Hormuz has led to a surge in China's shipbuilding orders, particularly for oil-carrying v

Korean Media: Blockade of Strait of Hormuz Drives Surge in China’s Shipbuilding Orders

A September 22 article published by Korea’s JoongAng Ilbo (Japanese edition) reports that, in the aftermath of potential U.S.-Iran conflict, China’s shipbuilding industry is experiencing unexpected, unprecedented reliance from global shipowners.

The blockade of the Strait of Hormuz has heightened uncertainty in maritime transport, with analysis indicating a concentration of large vessel orders—including tankers—at Chinese shipyards.

According to Nikkei Asia, new ship orders in China totaled 121.06 million deadweight tons in the first half of this year—2.7 times the volume recorded during the same period last year. China’s share of global new orders has risen to 82%, an increase of 14 percentage points compared to the previous year.

Chinese shipyards have surpassed last year’s performance within just six months. Major Chinese shipbuilders have seen substantial growth in order books.

Last month, China State Shipbuilding Corporation announced that new orders in the first half of the year reached 22.45 million deadweight tons—more than double the figure from the same period last year.

Private shipbuilder Hengli Heavy Industry received orders for 207 vessels in the first half of the year alone, surpassing its total annual order volume of 115 vessels from the previous year within just six months.

Nikkei Asia notes that the blockade of the Strait of Hormuz has significantly accelerated the growth in China’s shipbuilding orders. Reports indicate a sharp rise in demand for tankers and large vessels, particularly among Asian nations highly dependent on Middle Eastern crude oil.

The United States’ shipbuilding capacity is less than 0.5% of China’s. Once a dominant force in global shipbuilding, the U.S. was overtaken by China after World War II, then by Japan and South Korea.

According to data from the U.S. Naval Intelligence Command, current U.S. shipbuilding capacity remains below 0.5% of China’s.

The shipbuilding sector is expected to be a key topic at upcoming Sino-U.S. summit talks. The port entry fee extension agreement reached during last year’s summit is scheduled to expire this autumn.

Original source: toutiao.com/article/1876984000196746/

Disclaimer: This article reflects the personal views of the author.