China dominates global shipbuilding, South Korean giants expected to miss annual targets

China continues to assert its dominance on the global shipbuilding scene, China Daily reported citing data from the Ministry of Industry and Information Technology.

China’s shipbuilding output surged by 12.3 percent year-on-year, reaching 38.09 million deadweight tons in the first 11 months of 2023, capturing over 50 percent of the world market.

New orders followed suit, witnessing an impressive 63.8 percent YoY increase, securing a commanding 65.9 percent share globally.

Industry insiders project China’s shipbuilding prowess to persist into 2024, particularly in the export sector, driven by the rising demand for vessels powered by alternative fuels.

For example, Shanghai Waigaoqiao Shipbuilding (SWS), a subsidiary of China State Shipbuilding Corporation (CSSC), surpassed its annual delivery targets with 23 merchant vessels and offshore products delivered throughout the year.

As China expands its influence with strategic shipbuilding clusters and explores intelligent ship technologies, it positions itself as a formidable force in the industry.

On the flip side, South Korean shipbuilders seem to be facing challenges in meeting annual targets. Samsung Heavy Industries (SHI) and Hanwha Ocean, two major players in the Korean shipbuilding arena, are not expected to meet their targets of $9.5 billion and $6.98 billion, respectively.

The companies reached 69 percent and 43 percent of their goals with $6.6 billion and $3 billion respectively, the Business Korea reports.

The duo is reportedly grappling with finalizing negotiations for the second LNG carrier project by Qatar Energy, potentially falling short of orders before the year-end.

The duo is in talks with Qatari counterparts for the construction of approximately 30 additional vessels.

In the first phase of the program, a total of 60 ships were ordered at Korean and Chinese shipyards. The recent order secured by HD Hyundai brings the total number of confirmed LNG carriers to be delivered to QatarEnergy and its affiliates to 77.

Meanwhile, HD Korea Shipbuilding has emerged as the frontrunner in the eco-friendly fuel carrier market, clinching contracts for 23 out of 38 mega-sized LPG and ammonia transport vessels commissioned globally, constituting a substantial 61% market share, data from the beginning of December shows.

With orders spanning 155 vessels, encompassing a marine facility, the company has already surpassed its annual order target of $15.74 billion, achieving an impressive 138.7% of the set goal.