- Korea’s shipbuilding order share dropped to 2% in August due to selective orders.
- China leads the market with 90% of orders in August.
- Global ship orders have increased by 30% from January to August 2024.
In August, Korea’s share of global shipbuilding orders fell to just 2%, primarily due to selective orders. This decline was driven by a backlog of work that will last for over three years, leading Korean shipbuilders to prioritize more lucrative vessels, reports BusinessKorea.
China Dominates the Shipbuilding Market
According to a report by Clarkson Research on September 5, global ship orders in August totaled 3.87 million CGT (106 ships), a 27% increase from the same period in 2023. China dominated the market with 3.47 million CGT (95 ships), representing 90% of the total orders. In contrast, Korea secured only 80,000 CGT (4 ships), accounting for 2% of the orders.
While Korea led the market in July with a 40% share, it lost the top spot to China again in August. This year, Korea’s shipbuilding industry has seen fluctuating monthly order shares, steadily losing ground to China since the beginning of 2024.
Year-to-Date Order Growth
From January to August 2024, global ship orders reached 40.207 million CGT (1,454 ships), a 30% year-on-year increase. China claimed 67% of these orders (28.22 million CGT), and Korea held a 20% share (8.22 million CGT). Both countries saw growth, with China’s orders increasing by 53% and Korea’s by 14% compared to the same period in 2023.
Global Order Backlog
As of August, the global shipbuilding order backlog was 143.78 million CGT, a slight decrease from the previous month. China accounted for 77.15 million CGT (54%), and Korea for 39.02 million CGT (27%).
While China experienced a drop of 920,000 CGT, Korea saw a small increase of 50,000 CGT during the same period.
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Source: BusinessKorea
