Global New Ship Orders Drop Sharply In First Half Of 2025, Led By Declines In China And Korea

According to the latest Clarksons data released on July 4, global new shipbuilding orders saw a sharp decline in June 2025 compared to the same period last year.

This reflects a broader slowdown in the maritime construction sector, especially in China and South Korea, the two leading shipbuilding nations. Despite a slight month-on-month increase, first-half 2025 orders plunged 54% year-on-year, signaling challenges for the global shipbuilding industry.

June 2025: Sharp Year-on-Year Decline but Monthly Rebound

In June 2025, global new ship orders totaled 2.56 million compensated gross tonnage (CGT) across 84 ships, an 81% drop from 13.26 million CGT (527 ships) in June 2024. However, the number rose 44% from 1.78 million CGT in May 2025, offering a glimmer of hope.

• China led with 1.37 million CGT (50 ships), capturing 53% market share.

• South Korea followed with 1.05 million CGT (18 ships) and a 41% share.

First Half of 2025: Major Declines in Orders

From January to June 2025, total global orders dropped 54% to 19.38 million CGT (647 ships) from 42.58 million CGT (1,788 ships) in the same period last year.

• China received 10.04 million CGT (370 ships) – a 65% drop – but still led the global market with a 52% share.

• Korea followed with 4.87 million CGT (113 ships) – down 33%, holding a 25% share.

• Japan trailed with smaller volumes and an 8% market share.

Backlog and Price Trends Signal Mixed Market Sentiment

As of end-June 2025, the global backlog of new ship orders stood at 163.74 million CGT, down slightly from May.

• China’s backlog: 96.82 million CGT (59% market share), down 990,000 CGT from May.

• Korea’s backlog: 35.42 million CGT, down 890,000 CGT from May.

• Japan’s backlog: 13.77 million CGT, holding 8% share.

Meanwhile, the Clarksons Newbuilding Price Index rose to 187.11, up from 186.69 in May, and 47% higher than in June 2020, showing that ship prices remain elevated.

Notable newbuilding prices (as of June 2025):

• Large LNG Carrier (174,000 m³): US$255 million (unchanged)

• Very Large Crude Carrier (VLCC): US$126 million (up US$1 million)

• Ultra-large container ship (22,000–24,000 TEU): US$273 million (unchanged)

The global shipbuilding industry is experiencing a significant slowdown in new orders despite resilient prices and moderate month-on-month recovery in June. China and South Korea remain dominant players, though both recorded steep year-on-year declines. As backlogs stabilize and newbuilding prices remain strong, shipbuilders may need to adapt to shifting demand and tighter market conditions through innovation and strategic planning for the remainder of 2025