- China dominates global shipbuilding with a 62.42% market share, followed by South Korea and Japan.
- The U.S. shipbuilding industry remains small but has growth potential through investments and partnerships.
- The U.S. imposed tariffs and incentives to counter China’s dominance and boost domestic production.
- China criticized U.S. measures, warning of supply chain disruptions as global competition intensifies.
China has solidified its position as the world’s top shipbuilding nation, securing orders for 3,454 vessels out of the global order book of 5,735. According to Greek shipbroking firm Intermodal, this accounts for 62.42% of total orders, amounting to 175.4 million gross tons. The combined dominance of China, South Korea, and Japan surpasses 90% of the world’s shipbuilding market.
South Korea follows in second place with a 21.39% market share, corresponding to 687 vessels, while Japan ranks third with 8.83%, amounting to 651 vessels. A key driver of this Asian dominance is the growing demand for clean-fuel-powered ships. Stricter environmental regulations and improved financing options have contributed to a surge in dual-fuel fleets, which reached 2,119 vessels by the end of 2024, as reported by Maritime Gateway.
The U.S. Shipbuilding Landscape and Expansion Efforts
In comparison, the United States holds a minor share in the global shipbuilding industry, with only 52 vessels in its orderbook, totaling approximately 245,000 gross tons. The country’s production mainly consists of tugboats and passenger or cruise vessels. Despite this small output, the U.S. has significant potential for growth, supported by strong investment capabilities, advanced technology, and strategic partnerships like its collaboration with CMA CGM. Additionally, its expertise in military shipbuilding presents an opportunity to enhance commercial ship production.
Analysts anticipate an increased focus on U.S. shipbuilding while emerging players such as Vietnam and India are positioning themselves to challenge the dominance of China, South Korea, and Japan.
U.S. Response to China’s Shipbuilding Supremacy
The U.S. government has voiced concerns over China’s dominance in the maritime sector, with the U.S. Trade Representative (USTR) labeling it as ‘unreasonable’ and restrictive to American commerce. Ambassador Katherine Tai highlighted the stark contrast in production numbers, noting that while China builds over 1,700 vessels annually, the U.S. constructs fewer than five.
To counter China’s stronghold, the USTR proposed new policies in February 2025, including imposing a fee of up to $1.5 million on Chinese-built vessels entering U.S. ports. These measures aim to reduce reliance on Chinese shipbuilding and encourage domestic production.
Strategic Measures to Revitalize U.S. Shipbuilding
Amid these concerns, U.S. President Donald Trump announced an ambitious plan to reinvigorate the country’s shipbuilding industry. Speaking to Congress, he introduced establishing a new Office of Shipbuilding within the White House and unveiled tax incentives designed to stimulate domestic shipyard activity. These efforts are intended to bring manufacturing back to the U.S. and reduce dependence on foreign-built vessels.
Further reinforcing this initiative, French shipping giant CMA CGM committed to investing $20 billion over four years to support the expansion of U.S. maritime transport and shipbuilding. This investment aims to enhance U.S. shipbuilding infrastructure, expand port operations, strengthen logistics networks, and advance air cargo services.
China’s Response and the Global Shipbuilding Outlook
Reacting to the proposed U.S. tariffs, China’s foreign ministry addressed the issue in a press conference on March 7, 2025, arguing that these measures could disrupt global supply chains rather than significantly benefiting the U.S. shipbuilding sector. The geopolitical tension surrounding the shipbuilding industry continues to evolve, with major players vying for a stronger market presence.
As global demand for cleaner, more efficient vessels grows, the shipbuilding sector faces significant transformation. While China remains the dominant force, shifts in trade policies, regulatory pressures, and emerging competition may reshape the industry’s future.
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Source: Maritime Gateway
