China has solidified its position as the world’s leading builder of container vessels, commanding a staggering 68.5% of the global orderbook in terms of TEU (twenty-foot equivalent unit) capacity. This marks a dramatic shift in the industry, as Korea, the former leader, now holds a distant second place with a 23.3% market share.
Chinese shipyards first outpaced their Korean counterparts in 2015 and have since expanded their dominance, particularly in recent years. In 2024 alone, Chinese shipyards secured orders amounting to 3.61 million TEU, far exceeding Korea’s 0.66 million TEU. These orders, combined with strategic capacity expansion projects, have pushed China’s orderbook pipeline to reach as far as 2030.
Cost and Capacity: Keys to China’s Success
China’s dominance is attributed to its competitive pricing and aggressive investments in shipyard capacity. Major Chinese players like New Times Shipyard (NTS), Yangzijiang (YZJ), and CSSC Group have undertaken massive expansion efforts, creating newbuilding slots well into the next decade. Some yards, like Guangzhou International Shipyard, have even shifted from constructing other vessel types to focusing on container ships.
Furthermore, partnerships like the one between Hengli Group and MSC have reinvigorated facilities such as the former STX Dalian shipyard, underscoring China’s commitment to meeting global demand.
Korean Shipyards Adapt to the New Landscape
While Korea remains a significant player in the market, its share is steadily declining. Korean shipbuilders still attract orders for large mainline vessels and mid-sized ships, with smaller yards like HJSC and Daehan seeing renewed activity. Notably, Hanwha Ocean has re-entered the container ship market, driven by rising newbuilding prices.
However, Korea faces challenges in maintaining competitiveness against China’s cost advantage and large-scale capacity. Industry experts predict a further erosion of Korea’s market share once the current orderbook boom subsides.
Japan Retains a Modest Presence
Outside of China and Korea, Japan holds a modest 6.4% share of the global container vessel orderbook. Shipyards like JMU and Imabari continue to attract orders, particularly from carriers like Ocean Network Express (ONE), though many of these contracts are also moving toward Chinese and Korean builders.
Diverse Ordering Strategies
While China’s dominance is clear, ordering preferences among global shipping lines vary. Chinese yards have attracted significant orders from major carriers like MSC and Hapag-Lloyd, both of which previously favored Korean builders. COSCO Group, a major Chinese shipping line, has bolstered its in-house shipbuilding capabilities, further solidifying China’s shipbuilding ecosystem.
In contrast, some carriers remain loyal to their home countries. HMM continues to support Korean yards, while Taiwanese lines like Evergreen and Yang Ming distribute their orders among Taiwan, Korea, and Japan, avoiding over-reliance on China due to regional geopolitical concerns.
A Changing Global Landscape
China’s rapid ascent as the dominant shipbuilding power highlights the shifting dynamics of the global maritime industry. With its unmatched cost advantages and capacity expansion, China is poised to retain its leadership position for the foreseeable future. Meanwhile, Korea and Japan must adapt to this new reality, finding niches and strategies to stay competitive in an increasingly consolidated market.
Source: Alphaliner
