“Today, there is no ship that China cannot build!” BRS Group, a well-known ship broker and consulting agency, emphasized in its latest annual report that China has an “unrivaled” position in the global shipbuilding industry. China’s shipbuilding industry has entered a new stage of expansion, adding about 200 ships to the global shipbuilding capacity each year.
By examining the landscape of China’s shipbuilding industry, BRS analysts highlight the growing market share of major shipyards and the massive wave of capacity expansion that kicks off in 2024.
Examining the landscape of China’s shipbuilding industry, BRS analysts highlight the growing market share of major shipbuilders and a massive wave of capacity expansion set to kick off in 2024.
BRS data shows that China’s total shipbuilding capacity will increase by 12% to 47.8 million deadweight tons in 2024. The ratio of orders to annual capacity reached a record high of 5.5, a significant increase from 3.2 in 2022 and 3.8 in 2023. Analysts noted that “most Chinese shipyards are fully booked for the next three to four years, with no slots available until the end of 2028.”
In 2024, China ranks first in the number of new ship orders in the bulk carrier, tanker and container ship markets, except for liquefied natural gas (LNG) carriers. It is worth mentioning that analysts have begun to question South Korea’s dominance in the LNG carrier market.
China’s top five shipbuilding groups
BRS data shows that in 2024, the new ship orders of the top five Chinese shipbuilding groups will reach 179.9 million deadweight tons, accounting for 69% of the total domestic orders, and the share of the global market will soar from 33% in 2023 to 46.5% in 2024.
The top shipbuilding group remains China State Shipbuilding Corporation (CSSC). On a deadweight tonnage basis, CSSC holds 34.2% of the domestic newbuilding order book and 23.0% of the global order book. in 2024, CSSC secured a total of 48.2 million deadweight tons of newbuilding orders, which is 3.2 times the size of HD Hyundai, the largest shipbuilding group in South Korea.
New Times Shipbuilding and Yangzijiang Shipbuilding Group ranked second and third, with order books of 24.6 million DWT and 23.4 million DWT respectively. As the two largest private shipbuilders in China, New Times Shipbuilding and Yangzijiang Shipbuilding accounted for 8.3% and 5.7% of the global newbuilding market in 2024; the two shipbuilders were ranked third and fourth in the global rankings in terms of total deadweight tonnage.
COSCO Shipping Heavy Industries ranked fourth, occupying 8.8% of the total domestic order book and 5.9% of the global newbuilding market, making it the fifth largest shipbuilding group on a global scale. It is worth noting that COSCO Shipping Heavy Industries was once the second largest shipbuilding group in China.
The new shipbuilder Hengli Heavy Industries has become China’s fifth largest shipbuilding company. The shipbuilder was established after Hengli Group acquired STX (Dalian) Shipbuilding. As a relatively new private shipbuilder, it has won orders for 19.9 million deadweight tons in just two years, making it the world’s sixth largest shipbuilding group.
Seven of the world’s top ten shipbuilders are in China
According to Clarkson, for the full year 2024, global shipbuilders received orders for a total of 2,412 new ships totaling 65.81 million compensated gross tonnage (CGT), up 34% from 2023 and reaching the highest level since 2007 (94 million CGT).
Chinese shipbuilders received orders of 46.45 million CGT (1,711 ships) for the year, with a market share of 70%. South Korean shipbuilders received orders of 10.98 million CGT (250 ships), with a market share of only 17%. The order book of other countries and regions, such as Japan, amounted to 8.38 million CGT (451 ships), accounting for 13%.
Calculated by CGT, among the top ten monohull shipbuilders (non-shipbuilding groups) in the world in terms of order volume in 2024, seven are in China and the remaining three are in South Korea.
- New Times Shipbuilding topped the list with 106 ships for 4.63 million CGT;
- Hudong-Zhonghua ranks second, with 51 new ships for 4.17 million CGT in 2024;
- New Yangzi Shipbuilding, a subsidiary of Yangzijiang Shipbuilding Group, ranked third with 84 ships for 3.428 million CGT;
- Hengli Heavy Industries ranked fourth on the list with an order book of 56 ships for 2.68 million CGT;
- Samsung Heavy Industries ranked fifth with an order book for 37 ships and 2.502 million CGT;
- Hanwha Ocean Ranks Sixth with an order book of 37 Ships for 2.464 million CGT
- HD Hyundai Samho ranked seventh with an order book of 43 ships and 2.205 Million CGT;
- Dalian Shipbuilding Industry Corporation (DSIC) ranks eighth with an order book of 46 ships and 1.796 Million CGT;
- Waigaoqiao Shipbuilding ranked ninth with an order book of 35 ships and 1.61 Million CGT;
- Jiangnan Shipyard ranked 10th with an order book of 37 ships and 1.553 million CGT.
According to the China Association of the Shipbuilding Industry, in 2024, China’s shipbuilding completion volume, new orders and hand-held orders accounted for 55.7%, 74.1% and 63.1% of the global total in terms of deadweight tons, and 50.3%, 68.2% and 55.4% of the global total in terms of CGT, respectively.
In 2024, China’s exported ships accounted for 87.4%, 91.5% and 93.1% of the country’s shipbuilding completion, new orders and hand-held orders. The export value of Chinese ships was US$43.38 billion (about RMB 317.45 billion).