Global shipbuilding orders have reached 210.4 million CGT (a unit of ship weight measurement) this year, which is just slightly below the historical record of 210.4 million CGT set in May and still above the previous record of 195.4 million CGT in 2008.
Strengthening China's Position in the Shipbuilding Industry
Most of the growth achieved has come from Chinese shipyards, which accounted for 74% of the CGT registered last year. This has strengthened China's position as the largest shipbuilding country in the world. Chinese shipyards now hold 64% of the global order book, while South Korean and Japanese shipyards hold 19% and 6% of this market, respectively.
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China's Dominance in Major Maritime Transport Sectors
China's dominance is evident in all major cargo ship sectors. Chinese shipyards hold over 72% of the order book in each of the six main sectors, including container ships, oil tankers, gas carriers, bulk carriers, other cargo, and RoRo ships. These sectors collectively account for 88% of the global order book. The largest share of these shipyards is in the container ship sector, which constitutes 81% of the order book.
According to experts, container ships dominate the order book and its growth over the past 12 months. These ships account for 30% of the CGT currently on order and 68% of the increase over the past year.
Chinese shipyards currently have a better capacity coverage compared to their South Korean and Japanese competitors. Assuming that the capacity of each yard equals the highest annual CGT output during the 2021 to 2025 period, Chinese yards will have orders equivalent to an average of 4.2 years of capacity. The corresponding figures for South Korean and Japanese yards are 1.9 and 1.7 years, respectively.
Deliveries from China, South Korea, and Japan are expected to reach 40.1 million CGT in 2025, with 55.9 million CGT and 60.0 million CGT planned for delivery in 2027 and 2028, respectively. Chinese shipyards, in particular, need to ramp up production to meet the scheduled deliveries.
In this regard, if the current capacity equals the highest CGT delivered or scheduled during the 2021 to 2030 period, the average coverage will drop to 2.1 years for Chinese yards and 1.6 years for South Korean and Japanese yards.
China also needs to reach new annual production records to fulfill its delivery commitments. Chinese shipyards have planned to deliver a record 44.0 million CGT by 2028, which will be nearly double the 22.7 million CGT delivered in 2025. The expansion of capacity required to achieve this goal may carry the risk of underutilization if contracts decrease in the future.
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