China’s share of the tanker orderbook rose from 32.4% in 2022, to 62.6% in 2023 and then 71.2% in 2024. Its share of the container ship orderbook has shown a similar growth trajectory. The nation has ranked first in the world for new orders since 2012. Labor costs are about half of what they are in Korea and Japan, and China is the world’s cheapest steel manufacturer.
Niels Rasmussen, Chief Shipping Analyst at BIMCO, says that during the past five years Chinese shipyards have built 50% of the ship capacity delivered, and Chinese shipyards now hold 66% of the ship capacity in the orderbook. “It is particularly noteworthy that Chinese shipyards have begun to attract more and more ‘advanced’ ship types that South Korean shipyards previously dominated, e.g. LNG tankers and the very largest container ships.”
Last year, for example, Jiangnan Shipyard and China Shipbuilding Industry Corporation jointly delivered the Chinese designed 175,000 cubic meter Mark III Flex membrane LNG carrier Al Shelila to ADNOC.
Container ships and LNG tankers make up around 45% of the capacity on order for delivery during the coming five years but only around 25% of the capacity delivered during the past five years, Rasmussen says. Focus has firmly shifted to the largest container ships. The container ships delivered during the next five years will on average be 80-85% larger than those delivered during the past five years.
Chinese yards are looking to maintain their lead in the growing new fuel and clean technology market, and engine and equipment designers are building local capacity. Silverstream Technologies, for example, is a founding member of the Global Sustainable Transport Innovation Alliance (GSTIA), an initiative sponsored by the Chinese Ministry of Transport, designed to accelerate green industrial projects within China.
COMING TO AMERICA: In June, HD Hyundai announced the launch of a strategic shipbuilding collaboration centered on Tampa Ship, an Edison Chouest Offshore (ECO) company to build container ships in the U.S. Dino Chouest, Executive Vice President of ECO and Choi Hannae, Vice President, Head of Corporate Planning Division at HD Korea Shipbuilding & Offshore Engineering.
Andrew Starforth, Silverstream General Manager, China, says that at the start of January 2025, the number of ships (over 5,000dwt) built in Asia with energy efficiency technologies onboard or on order totaled over 10,000 vessels – an increase of roughly 10% from January 2024. Silverstream works with 20 shipyard partners worldwide, including 16 across China, Korea and Singapore, and Starforth says that, based on data from Clarksons, approximately a third of in-service tonnage built at Asian shipyards is now equipped with some type of emissions-reducing technology. Silverstream’s calculations show that 42% of the entire Asian orderbook has energy efficiency technologies on order or already installed.
Korea’s market share in the global shipbuilding market has been declining over the past four years, and the government has announced a 10-year investment plan to help businesses develop smart and clean energy technologies for the shipbuilding industry. The “K-Shipbuilding Hyper-Gap Vision 2040” aims to advance the nation’s capabilities in engines powered by LNG, ammonia and hydrogen.
Korea is also taking up the efficiency challenge in one of its key strengths – LNG carriers.
Korean Register has signed a MoU with Samsung Heavy Industries to jointly develop a 174,000cbm LNG carrier featuring three cargo tanks. Reducing the number of tanks is expected to lighten the hull, thereby improving fuel efficiency and decreasing natural boil-off of LNG, ultimately reducing operating costs. Fewer tanks also mean fewer onboard pumping systems, which simplifies maintenance and reduces long-term operational expenses.
JAPAN: In May, Tsuneishi Shipbuilding delivered the world’s first methanol dual-fuel Ultramax bulk carrier.
Image courtesy Tsuneishi Shipbuilding
Another MoU was signed with Hanwha Ocean for the development of an LNG carrier featuring a forward deckhouse. The optimized hull form is expected to reduce wind resistance and improve fuel efficiency, while providing more space for incorporating energy-saving devices such as wind-assisted propulsion systems. More positive developments are on the way. Chinese shipbuilders have been dominating the feeder container ship market, but HD Hyundai Mipo is gradually expanding its market share based on its differentiated technology and high quality. The yard won orders for 16 feeder container ships (under 3,000 TEU) out of a total of 33 ships ordered worldwide this year (according to Clarksons), taking first place in market share.
Korea is also looking to the U.S. market. Hanwha Ocean has already acquired Philly Shipyard and is looking to acquire Austal. HD Hyundai has entered a technology partnership with Huntington Ingalls and signed a collaboration deal with Edison Chouest Offshore.
Japan is also pursuing deeper collaboration with the U.S. through a Japan-US Shipbuilding Revitalization Fund. The idea is to focus on car carriers, LNG carriers, and ice-class naval vessels.
The volume of construction and orders received by the Japanese shipbuilding industry has dropped significantly due to the rise of China and South Korea. In addition, the technical capabilities that are the strength of the Japanese shipbuilding industry are being rapidly pursued by the two countries. Despite this, Japan aims to double its shipbuilding output by 2030, and the Nikkei recently reported that the Japanese government is considering establishing national shipyards operated by private companies.
VIETNAM: Naming ceremony for a bulk carrier at HD Hyundai Vietnam Shipbuilding
Image courtesy HD Hyundai Vietnam Shipbuilding
Japan has around a quarter of the bulk carrier orderbook, while China now has the rest and is gaining market share, according to global shipbrokers BRS Group. Japanese yards are consolidating to enhance their competitiveness: Tsuneishi Shipbuilding has acquired Mitsui E&S, and Imabari Shipbuilding and Japan Marine United (JMU) are further consolidating their business. Kawasaki Heavy Industries, Imabari Shipbuilding, and Japan Marine United are jointly planning to build liquefied hydrogen carriers. The aim is to combine facilities and human resources following the first commercial carrier to be designed and built by Kawasaki Heavy Industries.
Some Asian shipbuilders have acquired yards in Vietnam and the Philippines to boost production and lower costs.
Vietnam’s orderbook was exceeded by the Philippines in 2024, led by Tsuneishi Heavy Industries Cebu, but Vietnam’s shipbuilding has increased tenfold over the past 10 years and is expected to keep growing.
Still, as BRS says in its Annual Review 2025: “China has built a remarkable shipbuilding industry with well-equipped shipyards, a large base of marine equipment makers, and a robust banking system with personnel well acquainted and dedicated to the task. The nation’s success in shipbuilding is no longer just about cheap labor. China has also developed a strong shipowning sector, naturally capable of placing a huge number of orders with domestic yards – an advantage that Japan also knows but South Korea lacks.”
China’s fortunes could still change. BIMCO’s figures for the first half of 2025 indicate that Chinese shipyards’ market share has dropped from 72% to 52% amid growing concerns over the impact of US Trade Representative (USTR) port fees on Chinese ships.
