With the release of June order data, the results of the mid-year shipbuilding order competition between China and South Korea have been revealed. Chinese shipbuilders, with a 52% market share—double that of South Korea—have firmly secured the “mid-year championship” in global shipbuilding orders.
According to data released by Clarkson on July 4, global new ship orders in June totaled 84 vessels, or 2.56 million compensated gross tons (CGT), marking an 81% year-on-year decline from 13.26 million CGT in the same period last year but a 44% month-on-month increase from 1.78 million CGT in May. Chinese shipbuilders secured 50 new orders, or 1.37 million CGT, capturing 53% of the global market share and ranking first. South Korean shipbuilders received 18 orders, or 1.05 million CGT, with a 41% market share, placing them second.
In the first half of this year, global cumulative new ship orders reached 647 vessels, or 19.83 million CGT, a 54% decrease compared to the same period last year (1,788 vessels, 42.58 million CGT). Chinese shipbuilders secured 370 orders, or 10.04 million CGT, with a 52% market share, ranking first globally. South Korean shipbuilders received 113 orders, or 4.87 million CGT, with a 25% market share, placing them second.
As of the end of June, global order backlogs stood at 16,374 CGT, a decrease of 1.58 million CGT from the end of May. China’s order backlog reached 96.82 million CGT, maintaining its top position with a 59% market share. South Korea’s backlog was 35.42 million CGT, with a 22% market share, ranking second.
In June, new shipbuilding prices saw a slight increase, continuing their steady trend. Clarkson’s Newbuilding Price Index rose to 187.11 points, up 0.42 points from 186.69 in May and approximately 47% higher than the 126.93 points recorded five years ago.
By vessel type, the price of a 174,000-cubic-meter large LNG carrier remained unchanged at $255 million. The price of a very large crude carrier (VLCC) rose slightly by $1 million to $126 million, while the price of a 22,000–24,000 TEU ultra-large container ship held steady at $273 million.
In 2024, China’s shipbuilding industry maintained a dominant lead over South Korea in new order volumes. Out of the 12 months, China topped the monthly order rankings for 10 months, with South Korea only briefly taking the lead in February and July.
However, since the beginning of this year, South Korea’s shipbuilding industry has shown a strong resurgence in order competition. According to Clarkson, in January, global new orders totaled 51 vessels, or 1.46 million CGT. South Korea secured 13 orders, or 900,000 CGT, capturing a 62% market share by CGT and ranking first. China received 21 orders, or 270,000 CGT, with a 19% market share, placing it second.
In February, China quickly regained its lead. Global new orders that month totaled 50 vessels, or 2.07 million CGT. Chinese shipbuilders secured 37 orders, or 1.35 million CGT, with a 65% market share, topping the list. South Korean shipbuilders received seven orders, or 290,000 CGT, with a 14% market share, ranking second.
Due to the significant impact of the U.S. Trade Representative’s (USTR) Section 301 draft targeting China’s shipping, logistics, and shipbuilding industries, released in late February, South Korean shipbuilders surpassed China again in March. Clarkson data showed that South Korea secured 17 orders, or 820,000 CGT, with a 55% market share, ranking first. China received 31 orders, or 520,000 CGT, with a 35% market share, placing it second.
After the USTR announced a revised port fee plan in April, reducing charges for non-Chinese-owned Chinese-built or newly constructed vessels, shipowners returned to Chinese shipyards. In April, Chinese shipbuilders secured 51 orders, or 2.51 million CGT, capturing a 69% market share and reclaiming the top spot. South Korean shipbuilders received 15 orders, or 620,000 CGT, with a 17% market share, ranking second.
In May, Chinese shipbuilders secured 42 orders, or 640,000 CGT, with a 39% market share, maintaining their lead. French shipbuilders, buoyed by luxury cruise orders, jumped to second place with three orders totaling 546,000 CGT and a 32.7% market share. South Korean shipbuilders received only eight orders, or 250,000 CGT, with their market share dropping to 15%.
Industry insiders in South Korea noted that despite trailing China in order volume, the country’s shipbuilding industry rebounded strongly in June with a 41% market share, securing second place globally. South Korean shipbuilders continue to focus on a “selective order” strategy centered on high-value-added vessels, with an average vessel tonnage of 58,300 CGT—far exceeding China’s 27,400 CGT.
Looking at the first-half order performance of China and South Korea over the past four years, China has topped the list three times, while South Korea led only once. In the first half of 2022, South Korea ranked first with 9.94 million CGT and a 46% market share, driven by large LNG carrier orders from Qatar’s projects. China followed with 9.26 million CGT and a 43% market share. In 2023, China led with 10.43 million CGT and a 58.6% market share, while South Korea ranked second with 5.16 million CGT and a 29% share. In 2024, China dominated with 15.4 million CGT and a 64% market share, while South Korea trailed with 5.94 million CGT and a 24.7% share.
Generally, the first-half order performance in the global shipbuilding industry reflects the annual trend, and the “mid-year champion” is highly likely to become the “annual champion.” Over the past four years, South Korea only led China by 3 percentage points in the first half of 2022 but ultimately lost the annual competition by 12 percentage points. In other years, South Korea lagged behind China not only in the mid-year race but also in the full-year competition by a significant margin.
