by Gao Jing

In 2024, global new shipbuilding orders reached their highest level in 17 years, according to a report by the UK-based maritime and shipping consultancy Clarksons Research. Clarksons estimates that global shipyards signed 2,412 new ship orders in 2024, totaling 170 million deadweight tons (DWT) and 65.81 million compensated gross tons (CGT), representing a year-on-year increase of 33.77% in CGT terms.

Deadweight tons measure the total weight a ship can carry, including cargo, fuel, and supplies, while compensated gross tons adjust total tonnage based on ship type.

Chinese shipyards dominated the global rankings, with seven of the top ten shipbuilders by CGT headquartered in China. South Korean firms accounted for the remaining three spots.

The top four positions were occupied by Chinese companies, with New Times Shipbuilding (NST) securing the number one spot. Located in Jiangsu Province, NST signed orders totaling 4.63 million CGT, an increase of 276.72% year-on-year, capturing 7.03% of the global market share. In 2023, Hyundai Samho Heavy Industries of South Korea had held the top position.

New Times Shipbuilding, known for its ability to construct ships of up to 300,000 tons, is China’s first private shipbuilder capable of producing large LNG dual-fueled vessels. Its portfolio includes tankers, bulk carriers, container ships, and chemical tankers. After acquiring Jiangsu New Century Shipbuilding and Jingjiang New Century Steel Structure Manufacturing in 2016, it became the largest single private shipyard in China.

As of December 2023, the company had delivered 449 ships exceeding 10,000 tons, with a cumulative total exceeding 49.32 million DWT. To meet growing demand for environmentally friendly vessels, the company announced plans to invest 5 billion yuan to expand its smart manufacturing project for building vessels using renewable energy.

Hudong-Zhonghua Shipbuilding ranked second globally, with 4.17 million CGT in new orders, marking an extraordinary 22-fold increase from the previous year and a market share of 6.34%. Notable achievements included securing 24 ultra-large LNG carrier contracts from QatarEnergy, setting a global record for the largest single new ship order.

Yangzijiang Shipbuilding and Hengli Heavy Industry ranked fourth and fifth, with 3.43 million CGT and 2.68 million CGT in orders, respectively. Other Chinese companies, including Dalian Shipbuilding, Shanghai Waigaoqiao Shipbuilding, and Jiangnan Shipyard, also ranked among the top ten, collectively contributing to about 30% global market share.

China’s dominance in global shipbuilding was further cemented as its new orders reached 46.45 million CGT in 2024, a 58.47% increase year-on-year, with its global market share surpassing 70% for the first time. South Korean shipyards, in contrast, saw modest growth of 9.09%, with a 16.68% market share. The gap between the two countries grew substantially compared to 2023.

The global shipbuilding industry remains in an upward cycle that began in 2021. Factors driving demand include the replacement of aging ships—which typically have an 18-year lifespan—and the push for more environmentally friendly vessels. However, global shipyard capacity expansion has slowed compared to previous cycles, with limited potential for capacity increases outside China.

According to Dongwu Securities, this period of high demand is expected to continue until 2030, supported by both supply and demand dynamics. China’s advantages in raw materials, labor, and an integrated industrial chain position its shipyards as the primary beneficiaries of this cycle. South Korean shipbuilders, facing labor shortages due to a smaller workforce, began recruiting overseas but faced challenges in training skilled workers for the highly technical shipbuilding industry.

China’s dominance is reflected in the first three quarters of 2024, during which it accounted for 55.1% of global ship completions, 74.7% of new orders, and 61.4% of order backlogs. Exported vessels represented over 94% of China’s new orders and handovers, with export revenues reaching $33.11 billion. These figures underscore China’s strengthened position as the global leader in shipbuilding.