China’s shipbuilding industry has experienced remarkable growth in 2024, solidifying its position as a global leader. Data from the country’s Ministry of Industry and Information Technology shows a significant increase in completed vessels. There is also a rise in new orders during the first nine months of the year.
Key Performance Indicators:
- Completed Vessels: A total tonnage of 36.34 million deadweight tons (dwt) was completed, representing an 18.2% increase compared to the same period in 2023..
- New Orders: New orders reached 87.11 million dwt, a substantial 51.9% increase year-on-year.
- Order Backlog: The order backlog climbed to 193.3 million dwt, a 44.3% increase, showcasing strong future demand.
- Global Market Share: China’s shipbuilding industry accounted for a dominant 55.1% of global ship deliveries, 74.7% of new orders, and a commanding 61.4% of the global order book.
Dominance Across Vessel Types:
China’s dominance extends across a broad range of vessel types. Remarkably, Chinese shipyards secured the top spot in new orders for 14 out of 18 major global ship types. This leadership is particularly pronounced in the green ship sector, where China secured over 70% of the global orders. This focus on high-value, technology-driven, environmentally friendly vessels highlights a strategic shift towards a more sustainable future.
Factors Contributing to Success:
The significant growth in China’s shipbuilding industry can be attributed to various factors, including:
- High Demand: Global demand for ships, particularly in sectors such as container vessels and LNG carriers, remains strong.
- Competitive Pricing: Chinese shipyards are often considered highly competitive in terms of pricing and delivery times.
- Government Support: The Chinese government continues to support its shipbuilding industry through various policies. These initiatives play a significant role.
- Technological Advancements: China’s investments in research and development have led to significant advancements in shipbuilding technology. These include the development of greener vessel types.
Implications and Outlook:
China’s continued dominance in the shipbuilding sector has profound implications for the global maritime industry. It signals a shift in global shipbuilding capacity and potentially influences pricing and delivery timelines. The high order backlog suggests continued strength in the near future, but potential future declines in new orders could alleviate capacity pressures and potentially lead to price adjustments within 12-24 months. While the current trends indicate sustained strength, it is important to monitor global economic conditions and evolving shipping demands for a more comprehensive outlook.
