- China’s shipbuilding share dropped to 52% as USTR port fees on Chinese-built vessels raised concerns.
- Global ship contracting slowed sharply in early 2025, affecting bulkers, tankers, and gas carriers.
- Limited capacity outside China and long delivery timelines continue to shape order placements.
- South Korea, Japan, and emerging players like Vietnam and the Philippines face labor and scaling challenges.
Global shipbuilding activity saw a notable slowdown in the first half of 2025, with China’s share of newbuilding orders falling from 72% to 52%. This decline is partly linked to anticipated U.S. Trade Representative (USTR) port fees targeting Chinese-built ships, set to begin in October 2025. The drop in Chinese contracting also reflects broader shifts in vessel types and a cooling global order book, according to data from Hellenic Shipping.
Limited Capacity and Labor Costs Shape Shipbuilding Trends
Despite concerns over upcoming USTR port fees, China remains central to global shipbuilding due to limited capacity elsewhere. According to BIMCO, if global newbuilding activity had not declined sharply in early 2025, China’s share of orders would have likely remained higher. The current shipbuilding pipeline is already stretched, with a significant portion of new orders—particularly for larger vessels such as container ships, gas carriers, and cruise ships—scheduled for delivery as far out as 2028 and beyond.
South Korea and Japan, the second and third largest shipbuilding nations, face hurdles in scaling up production. Both countries are dealing with labor shortages linked to aging populations, which has driven up labor costs and affected their ability to compete with China. Although China’s lead in the sector remains strong, emerging shipbuilders like the Philippines and Vietnam could increase their presence in the coming years by leveraging lower labor costs.
Meanwhile, the U.S. and India have limited current capacity but are actively pursuing policies to grow their domestic shipbuilding sectors.
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Source: BIMCO
