BRS Shipbrokers’ latest annual review offers a rare glimpse into Japan’s shipbuilding industry, revealing that despite orderbooks being filled until 2028, the country continues to lose global market share
According to BRS Shipbrokers, Japan remained the world’s third-largest shipbuilding nation in 2024, with an orderbook totalling 43M dwt, representing an 11% market share, down from 15% at the end of 2023. Bulk carriers dominate the country’s shipbuilding pipeline, accounting for 29M dwt, followed by tankers (8M dwt) and container vessels (5M dwt).
While 2024 was a record year for newbuild orders globally, Japanese shipyards saw a decline in newly secured contracts, which fell to around 15M dwt from 20M dwt the previous year. Bulk carrier orders, the backbone of Japan’s shipbuilding sector, dropped 15% year-over-year, while tanker and container vessel orders declined even more sharply, by 32% and 80%, respectively.
Analysts noted a strong US dollar and access to competitive ship financing from local banks have helped Japanese yards secure new orders. However, the overall orderbook remains smaller than in previous years, resulting in reduced shipyard output and capacity.
Industry consolidation
Japan’s five largest shipyards secured 83% of all new orders placed in the country last year. Leading the market are Imabari Shipbuilding and Japan Marine United, which hold 29% and 25% of the domestic orderbook, respectively. In January 2021, the two companies launched a joint venture, Nihon Shipyard Co, which now manages an orderbook totalling 24M dwt, making it the fourth-largest shipbuilder globally.
Oshima Shipbuilding, Namura and Shin Kurushima complete Japan’s top five, collectively securing contracts for 100 vessels totalling 6M dwt in 2024. In total, approximately 26 shipyards received new orders last year.
However, as industry consolidation progresses, Japan’s shrinking market share has forced several shipyards to exit the sector. According to BRS Shipbrokers, Hitachi Zosen, Mitsubishi, MES and Sasebo have all withdrawn from the commercial market in recent years, while Sumitomo Heavy Industries recently announced it would cease commercial shipbuilding operations.
Investment in new technologies
Despite market challenges, Japanese shipyards remain at the forefront of technological innovation, investing heavily in next-generation vessel designs.
One notable initiative is a memorandum of understanding signed by NYK, Tsuneishi and British renewable energy company Drax to develop the world’s first biomass-fuelled ship and the technology to power it.
Additionally, a trio of Japanese firms, Tsuneishi, Mitsui E&S Shipbuilding, and Akishima Laboratories, has partnered to commercialise rigid sails as an energy-saving device. Their wing-shaped rigid sail will be designed to serve as an auxiliary propulsion system, enhancing fuel efficiency.
Tsuneishi has also made headlines with the launch of the world’s first 65,700-dwt methanol dual-fuel Ultramax bulk carrier in November 2024. The vessel is designed to minimise environmental impact by operating on methanol fuel while maximising load-carrying capacity and efficiency.
