- Global shipbuilding orderbook increased by 41% since 2021, driven by post-COVID trade recovery.
- China now holds a commanding 65% share of global shipbuilding orders, up from less than 10% in 2000.
- Reactivated and expanded Chinese shipyards are easing delivery timelines by addressing capacity constraints.
- Key drivers include government support, technological advances, low labor costs, and integrated supply chains.
The reopening of Jiangsu Rongsheng Heavy Industries, a major private shipyard, reflects China’s proactive approach to absorbing the surge in global shipbuilding demand. Other shipyards, such as Hengli Heavy Industry and Dalian Shipbuilding Offshore, have also resumed operations, while facilities like New Times Shipbuilding and Nantong Xiangyu Shipyard have expanded production. According to Breakwave Advisors, this strategic growth aims to reduce delivery delays caused by capacity shortages.
Dominating the Global Orderbook
China’s share of global shipbuilding orders has risen dramatically, securing 65% in 2024 compared to just 10% in 2000. Chinese shipyards lead the market, capturing 70% of new contracts, including 89% of containerships, 81% of bulk carriers, and 74% of tankers. This shift has coincided with a decline in the combined orderbook share of Japan and South Korea, now reduced to 31%.
Strategic Advantages Driving Growth
Investments and policy backing have fueled industry expansion. Technological Innovation: Advances have enabled the construction of complex vessels like gas carriers. Reliable and efficient material delivery enhances production timelines. Competitive labor costs and large-scale operations make Chinese shipyards globally attractive.
Focus on Sophistication and Sustainability
In addition to high production volumes, Chinese shipyards are advancing in the construction of sophisticated vessels, such as chemical tankers and LNG carriers, through international partnerships. The emphasis on environmentally sustainable practices further enhances China’s appeal in the global shipbuilding market.
Future Outlook
With a rapidly growing global orderbook, rising shipbuilding prices, and robust domestic demand, China’s position as the world leader in shipbuilding appears secure. As the industry continues to expand, Chinese shipyards will play a pivotal role in shaping.
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Source: Breakwave Advisors
