South Korea On Track To Win 20% Of Global Shipbuilding Orders
South Korea is poised to reclaim a 20 per cent share of the global shipbuilding market in 2025. This comes amid declining worldwide demand for new ships and the United States’ efforts to curb China’s maritime dominance. From January to November, Korea accounted for a 22 per cent share of global orders, according to The Korea Herald. Clarkson Research data shows Korean shipbuilders secured orders for 10.03 million compensated gross tonnage (CGT) during this period. CGT is a standardized unit measuring a shipyard’s workload and output, accounting for a ship’s type and size.
Korea Outperforming Rivals Despite Overall Decline
While Korea’s total orders fell 5 per cent compared with last year, it continues to outperform competitors. China remains the world’s largest shipbuilder, but its new orders dropped 47 per cent to 26.64 million CGT. Last year, Korea held only a 17 per cent market share, its lowest since 2016. Experts now project Korea will maintain a 20 per cent share for the full year. Globally, total shipbuilding orders fell 37 per cent to 44.99 million CGT, but Korea’s performance stands out thanks to U.S. policy measures against China.
U.S. Policy Gives Korea A Strategic Edge
The United States plans to levy a fee of around USD 50 per ton on ships built in China entering U.S. ports. This discourages shipowners from procuring vessels from China, making Korean builders a safer choice. Large Korean companies are already exceeding targets:
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HD Korea Shipbuilding & Offshore Engineering: USD 18.16 billion in orders for 129 ships (target USD 18.05 billion)
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Hanwha Ocean: USD 9.83 billion in orders, surpassing last year’s total
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Samsung Heavy Industries: Achieved 76 per cent of its USD 9.8 billion target
Collaboration With The U.S. Boosts Opportunities
Korean shipbuilders are benefiting from high-value orders, such as LNG carriers, though China remains dominant on price competitiveness. The U.S. MASGA (Make American Shipbuilding Great Again) project and Washington’s restrictions on Beijing are expected to help Korea gain further strategic advantage. President Donald Trump recently endorsed collaborations with Korean firms, with Huntington Ingalls and Philly Shipyard leading new U.S. Navy projects. Hanwha Ocean acquired Philly Shipyard, while HD Hyundai partnered with Huntington Ingalls in October to develop new support ships for the U.S. Navy, the first collaboration of its kind between Korea and the U.S.
(This article is syndicated from ANI)
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