An ultra-large container ship (Image courtesy of HD Korea Shipbuilding & Offshore Engineering)
SEOUL, Jan. 9 (Korea Bizwire) — South Korea’s share of the global shipbuilding market fell to its lowest level in eight years in 2024, despite an increase in total orders, according to a report by UK-based Clarkson Research on January 8.
Market Dynamics
South Korea secured 10.98 million CGT (compensated gross tons) in orders, representing 17% of the global total, up 9% from the previous year. However, its market share declined from 20% in 2023, marking the first time since 2016 that it dropped below 20%.
In contrast, China dominated the market, capturing 71% with 46.45 million CGT (1,711 vessels), a 58% increase in orders and an 11 percentage point rise in market share. This widened the gap between the two nations from 40 percentage points in 2023 to 54 percentage points in 2024.
Global Trends
The global shipbuilding market grew 34% year-on-year to 65.81 million CGT (2,412 vessels) in 2024. However, December saw a sharp decline, with new orders dropping 56% compared to the same month in 2023.
China accounted for 86% of December’s orders with 1.66 million CGT (67 vessels), while South Korea lagged with just 70,000 CGT (3 vessels), or 4% of the total.
Order Backlogs and Vessel Prices
At the end of 2024, the global order backlog increased by 1.67 million CGT month-on-month to 157.17 million CGT. China held 58% of the backlog with 90.78 million CGT, while South Korea accounted for 24% with 37.87 million CGT.
The Clarkson Newbuilding Price Index stood at 189.16 in December, a slight decrease from November but 6% higher than the previous year. Prices for key vessel types included $260 million for LNG carriers, $129 million for very large crude carriers, and $275 million for ultra-large container ships.
Outlook
As South Korea faces intensifying competition from China, industry analysts highlight the need for innovation and strategic investments to regain market share in the increasingly competitive global shipbuilding industry.
Kevin Lee (kevinlee@koreabizwire.com)
