South Korea’s shipbuilding sector has reclaimed its position as the global leader in shipbuilding orders after three years, surpassing China.
According to the Ministry of Trade, Industry, and Energy’s report on Apr. 3, South Korea’s shipbuilding orders in the first quarter amounted to $13.6 billion, surpassing China’s $12.6 billion, making it the quarterly world leader.
This marks the first time since the fourth quarter of 2021 that South Korea has secured the top spot in quarterly shipbuilding orders. The first quarter’s order value represents 45.5% of the total annual order value of $29.9 billion in 2020 for South Korea’s shipbuilding industry.
Based on a report by Clarkson Research, a British maritime and shipping research service, South Korea’s shipbuilding industry recorded a higher order value in the first quarter of this year compared to China.
South Korea’s order value increased by 41.4% to $13.6 billion, while China’s order value increased by only 8.6% to $12.6 billion during the same period.
South Korea has been in second place for the past three years, except for the fourth quarter of 2021 when the country outpaced China with orders worth $7.2 billion, while China recorded $6.7 billion. Even in the last quarter of the previous year, South Korea’s shipbuilding orders amounted to $8 billion, only half of China’s $16 billion, indicating a significant gap. However, in the first quarter, South Korea surpassed China by $1 billion.
In terms of order volume, South Korea’s volume in the first quarter was 4.49 million CGT (Compensated Gross Tonnage), slightly lower than China’s 4.9 million CGT. However, South Korea led in order value by focusing on building high-value ships.
During the first quarter, South Korea secured 100% of the orders for eco-friendly ships worldwide, including 29 LNG carriers and 20 ammonia carriers. The total volume of orders also surpassed China in March, recording 1.05 million CGT compared to China’s 730,000 CGT.
South Korean shipbuilders HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean secured the top three positions in the global shipyard rankings as of March 2024.
Furthermore, the country’s exports have maintained positive growth for eight consecutive months, starting from July 2023 until last month, mainly due to the robust performance of the shipbuilding industry.
To achieve this year’s export target of $700 billion, the Ministry has recognized the significance of the shipbuilding industry and plans to create a ‘Roadmap’ to develop the K-shipping industry in the first half of the year.
In the second half of the year, the Ministry will also unveil measures aimed at enhancing the competitiveness of small and medium-sized shipyards, as well as the export competitiveness of the shipbuilding materials industry.
