
This image provided by HD Korea Shipbuilding & Offshore Engineering Co. shows its nuclear-powered container ship. (Yonhap)
SEOUL, May 27, 2025 (Korea Bizwire) — As the United States intensifies its efforts to curb China’s shipbuilding dominance, global shipping giants are increasingly turning to South Korean shipyards for new vessel orders, according to industry sources and reporting by TradeWinds.
Germany’s Hapag-Lloyd, the world’s fifth-largest container shipping line, had been considering placing new orders for LNG-powered dual-fuel container ships with Chinese builders New Times Shipbuilding and Yangzijiang Shipbuilding.
The prospective orders included twelve 12,500 TEU-class and up to eight 16,000 TEU-class vessels, following previous contracts with both yards.
However, amid rising U.S. pressure on Chinese maritime players, Hapag-Lloyd is now weighing a shift in its procurement strategy, potentially awarding the contracts to South Korean firms such as Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering (HD KSOE).
The pivot comes after the Office of the U.S. Trade Representative (USTR) announced plans last month to impose port fees on vessels operated by Chinese shipping companies and ships built in China, signaling a broader effort to reduce American dependency on Chinese maritime infrastructure.
While it is highly unusual in the shipbuilding industry to reassign optional orders to different builders when no defects are reported in previously delivered ships, the growing geopolitical risk has become a major factor in procurement decisions.
Nonetheless, cost remains a sticking point. South Korean yards are reportedly quoting prices up to $35 million higher per ship than their Chinese counterparts — prompting Hapag-Lloyd to reconsider its original Chinese suppliers, according to TradeWinds.
An industry insider noted, “Despite the pricing gap, Hapag-Lloyd’s consideration of Korean yards underscores how seriously shipping firms are taking the U.S. crackdown on China.” South Korean shipbuilders, bolstered by a healthy two-year order backlog, are under little pressure to compete on price.

A container ship built by HD Korea Shipbuilding & Offshore Engineering Co. (Image courtesy of Yonhap)
Japanese carrier Ocean Network Express (ONE), the world’s sixth-largest container line, is also expected to place a $2.5 billion order with HD Hyundai Heavy Industries for a fleet of twelve 16,000 TEU-class dual-fuel container ships. The first eight vessels have already been finalized, with four additional options under negotiation.
Each vessel in the deal is projected to cost $220 million.
According to TradeWinds, the U.S. regulatory pressure has created “a favorable environment for Korean shipyards,” as shipping companies look to mitigate potential sanctions or operational hurdles tied to Chinese-built vessels.
With the global shipbuilding market entering a quieter phase, container ship orders remain resilient — and South Korea is well-positioned to capture a larger share, particularly in a segment where China has historically been dominant.
“Container ships were one area where Chinese builders held an edge, especially in volume,” said an industry analyst. “Now, with geopolitical risk at play, Korean shipbuilders have a real opportunity to reclaim ground.”
M. H. Lee (mhlee@koreabizwire.com)