Chinese Shipyards Continue to Build Lead Taking Nearly All Orders in August

[Beijingwalker]

Chinese Shipyards Continue to Build Lead Taking Nearly All Orders in August​

Chinese yards booked nearly all the newbuilder orders in August (CSSC file photo)


PUBLISHED SEP 5, 2024 4:38 PM BY THE MARITIME EXECUTIVE

The Chinese shipbuilding industry is continuing to build its leadership based on new orders. August’s data released by Clarkson Research shows that South Korea continues to slip in the portion of new orders booked ceding the orders nearly entirely to China last month.

Analysts point to the strong overall order flow and the large backlog for construction which could be contributing to the South Korean industry becoming more selective in accepting orders. The building slots are mostly booked and with a lack of available dock space, the yards have three years or more of work on hand.

Overall orders were up strongly year-over-year according to Clarkson. They report in August orders were up 27 percent based on compensated gross tons to 3.87 million CGT. This included a total of 106 ships ordered. Year-to-date orders are up 30 percent with the data reflecting 1,454 ships ordered totaling 40.2 CGT.

China has been ahead most months in 2024 and in August it accounted for nearly all the orders recorded. Clarkson reports that Chinese shipbuilders received orders for 95 ships which represents 3.47 million CGT. This was 90 percent of the orders booked for the month. For 2024, China shipbuilders booked orders for more than 1,100 ships (28.2 GCT). This accounted for two-thirds (67 percent) of all the orders placed.

The South Korean builders only booked four ships in August (80,000 CGT) which amounted to just two percent of the global orders. Year-to-date South Korea has received 20 percent of the orders for a total of 181 vessels (8.2 CGT).

Both China and South Korea have large backlogs, Clarkson sets China’s total orderbook at over 77 million CGT, which represents 54 percent of the global backlog. South Korea has orders for 39 million CGT which I 27 percent of the global orderbook.

Despite the slowed pace, South Korea’s shipbuilders are reporting they are ahead of annual forecasts. HD Hyundai for example reported two new LNG bunker vessel orders today. Year-to-date they report booking orders for 150 ships and currently have reached 125 percent of its annual forecast.

Chinese shipyards are also continuing the order momentum. CSSC’s Huangpu Wenchong held an event at SMM in Hamburg to highlight booking a block of new orders from multiple shipowners. Last week COSCO placed orders for more than 50 new ships all to be built in China.

 

[Beijingwalker]

The South Korean builders only booked four ships in August (80,000 CGT) which amounted to just two percent of the global orders.

This is crazy, China might be the only country in the world which still builds ships in the near future, all other shipbuilders will be outcompeted out of business.

 

[Beijingwalker]

Korean Shipbuilders account for 2% of August orders while Chinese shipbuilders 90%​

September 6, 2024

The Korean shipbuilding industry’s order share fell to just 2 percent in August due to selective orders, according to a new report.

According to Clarkson Research, a UK-based shipbuilding and shipping market analyst on Sept. 5, global ship orders totaled 3.87 million CGT (106 ships) in August, up 27 percent from the same month of 2023.

China topped the order-taking standings with 3.47 million CGT (95 ships), a 90 percent share, followed by Korea with 80,000 CGT (4 ships), a 2 percent share.

This was due to the saturation of dock space with an order backlog which will give more than three years of work which forced Korean shipbuilders to selectively order more lucrative vessels.

Korea’s shipbuilding industry has been losing ground to the Chinese shipbuilding industry in terms of month-by-month order shares since the beginning of this year, taking the top spot with a 40 percent share in July but lost the lead to the Chinese shipbuilding industry again after one month.

Total global orders reached 40.207 million CGT (1,454 ships) in the January-August period of this year, up 30 percent year on year (32.232 million CGT or 1,436 ships). Of these, China accounted for 28.22 million CGT (1,15 vessels or a 67 percent share) and South Korea 8.22 million CGT (181 vessels or a 20 percent share), up 53 percent and 14 percent respectively from the same period of 2023.

In August, the global order backlog stood at 143.78 million CGT, down by 690,000 CGT from the previous month. By country, China accounted for 77.15 million CGT (54 percent) and Korea 39.02 million CGT (27 percent). Compared to August, China posted a drop of 920,000 CGT, while Korea a jump of 50,000 CGT.

In August, the Clarkson Newbuilding Index stood at 189.2 points, up 9 percent from the same month of last year and extending a 45-month rally since November 2020.

Source : Businesskorea

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[Beijingwalker]

South Korean Shipbuilding Industry Faces Threat as China Gains Ground​

SEOUL, Sept. 6 (Korea Bizwire) – In a concerning trend for South Korea’s once-dominant shipbuilding industry, Chinese competitors are rapidly gaining market share, aided by alleged industrial espionage and lenient court rulings in South Korea.

The situation has raised alarms about the potential loss of South Korea’s world-leading position in the sector, particularly in the crucial liquefied natural gas (LNG) carrier market.

Recent data from Clarkson Research, a British shipbuilding and maritime trade analysis firm, paints a stark picture. In August, South Korea’s share of global shipbuilding orders plummeted to a mere 2%, while China secured a commanding 90% of new orders.

The shift in market dynamics is particularly evident in the numbers. Last month, global ship orders totaled 3.87 million CGT (compensated gross tonnage), representing 106 vessels – a 27% increase from the same period last year.

Of this total, China claimed 3.47 million CGT (95 ships), while South Korea managed only 80,000 CGT (4 ships).

This dramatic downturn follows a brief resurgence for South Korea in July, when it briefly reclaimed the top spot with a 40% market share. However, that position was short-lived, with China swiftly reasserting its dominance.

Year-to-date figures further underscore the changing landscape. From January to August, global orders reached 42.07 million CGT (1,454 ships), a 30% increase from last year.

China accounted for 67% of these orders with 28.22 million CGT (1,015 ships), while South Korea secured 20% with 8.22 million CGT (181 ships).

The shifting balance is also reflected in the global orderbook. As of last month, China held 54% of outstanding orders with 77.15 million CGT, compared to South Korea’s 27% with 39.02 million CGT.

Compared to the previous month, China’s orderbook decreased by 920,000 CGT, while South Korea’s increased slightly by 50,000 CGT.

One area where South Korea still maintains an edge is in the construction of LNG carriers, which require advanced technology.

LNG vessels remain the flagship product of the Korean shipbuilding industry, with China yet to match Korea’s technological prowess in this niche.

However, this advantage is under threat as China actively seeks to acquire South Korean shipbuilding expertise, including core national technologies.

According to South Korea’s National Intelligence Service, there were 18 incidents of technology leaks from the Korean shipbuilding industry between 2014 and 2023, with 85% involving nationally designated core technologies.

Recent investigations have uncovered evidence of critical LNG carrier technologies being transferred to Chinese firms, often through former employees or consultants.

One such case involves the alleged disclosure of cargo hold quality improvement technology, a crucial component of LNG carriers.

The cargo hold, which stores LNG, is considered the most technologically demanding part of these vessels.

The National Intelligence Service has detected instances of this technology being transferred to Chinese companies, prompting investigations by the Korea Coast Guard and police.

Despite the severity of these leaks, legal consequences for industrial espionage have been surprisingly mild.

In a recent case, a former employee of a major South Korean shipyard was acquitted of charges related to leaking shipbuilding technologies to China.

Both the lower court and the appeals court ruled that the leaked information did not constitute core national technology or trade secrets.

This lenient approach to prosecution has led to growing concern within the industry, with some cynically noting that the potential gains from technology theft outweigh the legal risks.

Experts argue that without a shift in legal and political attitudes, along with stricter penalties for technology theft, South Korea risks falling behind in the global technology race, particularly in the strategically important shipbuilding sector.

South Korean Shipbuilding Industry Faces Threat as China Gains Ground - Be Korea-savvy

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