Seoul, May 9th – South Korea’s shipbuilding industry is facing renewed pressure as new data reveals a significant gap in new ship orders compared to its Chinese counterpart. According to a report released today by UK-based shipbuilding and shipping market analysis firm, Clarkson Research, South Korean shipbuilders secured only 17% of global new ship orders in April, falling far behind China’s dominant position.
The report indicates a substantial year-on-year decline of 56% in global new ship orders, totaling 3.64 million compensated gross tons (CGT) across 75 vessels. Of this, South Korea secured 620,000 CGT, representing 15 vessels, placing it second globally with a 17% market share. China, however, dominated the market, securing 2.51 million CGT across 51 vessels, capturing a commanding 69% of the global market.
This disparity highlights the ongoing challenges faced by South Korean shipbuilders in maintaining their competitiveness against the rising influence of China in the global shipbuilding industry. Factors contributing to this shift may include competitive pricing, government support for domestic shipbuilding in China, and technological advancements.
As of the end of April, the global order backlog decreased by 1.93 million CGT month-on-month, reaching 160.46 million CGT. South Korea’s order backlog stands at 35.57 million CGT (22%), while China holds a significantly larger backlog of 94.67 million CGT (59%).
This data underscores the need for South Korean shipbuilders to innovate, improve efficiency, and explore new strategies to regain market share and maintain their position in the global shipbuilding landscape. The industry must adapt to the evolving market dynamics and address the challenges posed by increasing competition from China.
Conclusion:
The latest figures from Clarkson Research paint a concerning picture for South Korea’s shipbuilding industry. The significant gap in new orders compared to China highlights the urgent need for strategic adjustments and innovation to ensure the long-term competitiveness of South Korean shipbuilders. Future research and analysis should focus on identifying specific factors contributing to China’s dominance and exploring potential avenues for South Korea to regain its footing in the global market.
References:
- Yonhap News Agency. (2024, May 9). 韩国4月新船订单量全球占比17%远不及中国. Retrieved from http://chinese.yonhapnews.co.kr/myonhap/2024/05/09/0002000000ACK20240509006000881.HTML
- Clarkson Research. (2024, May 9). Monthly Shipbuilding Report. London, UK.
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