A view of HD Hyundai Heavy Industries’ Ulsan Shipyard. (Yonhap)
SEOUL, Jan. 27 (Korea Bizwire) — In 2024, seven of the world’s top 10 shipbuilders by order volume were Chinese, reflecting a shift in global shipbuilding dynamics as Chinese shipyards capitalized on volume-based strategies, according to data released on January 26 by UK-based Clarkson Research.
The top four shipyards—New Times Shipbuilding, Hudong-Zhonghua Shipbuilding, Yangzijiang Shipbuilding, and Hengli Heavy Industry—were all Chinese.
Hudong-Zhonghua is a state-owned flagship under the China State Shipbuilding Corporation (CSSC), while Hengli Heavy Industry expanded its capabilities after acquiring STX Dalian, a former South Korean facility, in 2008.
South Korea’s Samsung Heavy Industries, Hanwha Ocean, and HD Hyundai Samho placed fifth through seventh, while the remaining three spots in the top 10 were also occupied by Chinese firms.
This marks a notable departure from previous years when South Korea’s “Big Three” (HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean) consistently dominated the rankings.
Industry insiders attribute this shift to strategic differences. South Korean shipbuilders, with more than three years of backlogged orders, have prioritized selective bidding for high-value ships like liquefied natural gas (LNG) carriers and eco-friendly vessels, resulting in lower overall order volumes.
Hanwha Ocean (Image courtesy of Hanwha Ocean)
Despite losing ground in order volumes, South Korean firms remain strong in backlog rankings. As of January 2025, HD Hyundai Heavy Industries led the global list with 8.93 million CGT (compensated gross tonnage), followed by Samsung Heavy Industries (8.72 million CGT) and Hanwha Ocean (8.49 million CGT).
China’s dominance is backed by strong government support, competitive steel prices, favorable exchange rates, and lower labor costs.
Chinese shipping companies also prioritize domestic shipyards, bolstering their market share. According to UK-based VesselsValue, China ranked first globally in ship ownership in 2024.
This photo, provided by the Ministry of Trade, Industry and Energy, shows cranes at Samsung Heavy Industries’ shipyard in Geoje, 470 kilometers southeast of Seoul. (Image courtesy of Yonhap)
Experts suggest South Korean shipbuilders could benefit from increasing U.S. scrutiny of China’s shipbuilding industry. The Trump administration has been advancing efforts to impose tariffs on Chinese-made ships under Section 301 of the U.S. Trade Act, a move that could restrict China’s global reach and create opportunities for Korean firms.
“With the U.S. seeking partners for construction as well as maintenance and repair operations (MRO) to counterbalance China, South Korea has a strategic opening to strengthen its foothold in the global shipbuilding industry,” said an industry official.
As 2025 unfolds, the competition between China’s volume-driven approach and Korea’s high-value strategy will shape the future of global shipbuilding.
M. H. Lee (mhlee@koreabizwire.com)
