Japan's shipbuilding industry is experiencing a boom with the production and delivery of dry cargo ships. This industry peaked in the early 2010s, with 2012 recognized as the best year for ship deliveries. During this time, Japanese shipbuilders gained fame particularly in the construction of Handysize, Supramax, and Panamax ships. However, over time, the production of Ultramax ships has captured a larger market share due to higher demand.
Trends in Dry Cargo Ship Construction
The increasing preference of owners for larger ships with better loading capacity and improved fuel efficiency has led Japanese shipbuilders to shift towards producing larger vessels. These changes in the order market promise a bright future for Japan's shipbuilding industry. Currently, NSY holds 34.5% of all orders in Japan with 125 dry cargo ship orders. Following them, Oshima has 76 ships with a 21% share, and Tsuneishi has 63 orders with a 17.4% share. Together, these two companies account for 55.5% of all dry cargo ships currently on order.
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Market Share Distribution by Ship Type
The composition of the dry cargo ship market in Japan varies by ship type. For instance, in the Capesize segment, NSY dominates with 63.8% of the active fleet and 60.5% of current orders. Additionally, Tsuneishi leads in the Kamsarmax segment with 52.3% of the active fleet and 48.4% of new orders. In the Ultramax segment, NSY and Oshima together account for over 70% of the active fleet and more than 75% of current orders.
Compared to Capesize and Kamsarmax, the Handysize market has a higher diversity of shipbuilders. In the active fleet, NSY holds the highest share at 33.4%, but builders like Namura with 15%, Onomichi with 10.8%, and Kanda with 9.2% also have significant shares in this segment.
This diversity in Handysize construction reflects the depth of technical experience and production capacity across several Japanese shipyards. While the Japanese dry cargo ship market is dominated by a few large groups, Handysize stands out due to its broad production base.
Impact on the Ship Buying and Selling Market
In the buying and selling market, the distinction between Japanese dry cargo ships is a significant issue. Ships built in Japan are not considered a homogeneous product, as the reputation of the shipyard, design history, and ship type influence liquidity and resale prices. Some shipyards have strong buyer followings in specific market segments, which helps to strengthen confidence in second-hand transactions and, in some cases, maintain higher value.
Overall, current trends in Japan's shipbuilding industry demonstrate the country's high capabilities in producing dry cargo ships and the growing demand for this type of vessel in the global market.
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