A photo of the LNG carrier “LEBRETHAH” built by Hanwha Ocean and delivered to SK Shipping last February. / Hanwha Ocean
In March this year, the Korean shipbuilding industry surpassed its competitor, China, in securing the most orders. According to Clarkson Research, a British marine and shipbuilding market analysis firm, out of the global ship orders of 1.5 million Compensated Gross Tonnage (CGT) (58 ships) last month, Korea secured 820,000 CGT (55%), surpassing China, which secured 520,000 CGT (35%). CGT is a unit that represents the actual workload size.
Last month, Korea and China received orders for 17 and 31 ships, respectively. The reason Korea ranked higher in CGT despite ordering fewer ships than China is interpreted as Korea focusing on high-value large ships while China centered on smaller ships. The rankings between Korea and China shift often due to the varying monthly ship contracts. In February, Korea and China logged orders of 340,000 CGT (9%) and 2.63 million CGT (70%), respectively, with China having a large advantage.
For the cumulative first quarter (January-March), China still leads with a 49% market share, compared to Korea’s 27%. Over the past five years, China has consistently dominated the market with a share around 50%, and this trend continues. Korea’s first-quarter market share has slightly decreased from 36% in 2021 to 27% this year.
There is anticipation in the shipbuilding industry that the second Trump administration in the U.S. might institute strict regulations on Chinese ship imports, leading to potential benefits for “K-Ships.” The U.S. Trade Representative is currently considering imposing a fee of up to $1.5 million (about 2.16 billion won) on Chinese ships entering U.S. ports. This potential shift could deter carriers from ordering Chinese ships, possibly benefiting Korea. According to Clarkson, last year, China was the overwhelming leader in global ship orders with a 70% share, followed by Korea (16%) and Japan (6%).