Chinese shipyards hit record 47% global market share in 2022 ，exceeds the combined share of Japanese and South Korean shipyards

[beijingwalker]

Chinese shipyards hit record 47% global market share in 2022 ，exceeds the combined share of Japanese and South Korean shipyards​

February 15, 2023

Ships delivered to new owners by Chinese shipyards in 2022 totalled 14.6 million Compensated Gross Tonne (CGT), a measure of shipyard activity, of the 30.8 million CGT delivered globally. The two other main shipbuilding nations, Japan and South Korea, delivered respectively 4.8 and 7.8 million CGT.

Twenty years ago, Chinese shipyards had a market share of less than 10% but a massive capacity expansion during the 2000s propelled the country to the number one spot already in 2009,

…says Rasmussen.


The shipyards in China also dominate the order book for ships to be delivered in the coming years. The global order book currently totals 109.1 million CGT, and 45% of those orders are held by Chinese yards compared to 34% and 10% by South Korean and Japanese yards respectively.

Chinese shipyards’ success has been achieved by maintaining a leading position within dry bulk ships and, more recently, establishing themselves as the premier location for building container ships. They also hold a large share of orders for most other ship types but have yet to establish themselves as key players within the gas carrier sector.

LNG carriers are currently the second largest ship sector within the global order book for ships, and South Korean shipyards remain the market leaders within this sector, holding 79% of the order book,

..says Rasmussen.

Currently, Chinese shipyards hold only 15% of the LNG carrier order book, but they could make inroads also into this sector, just like they gradually attracted orders for ultra large container ships. However, in the short-term, yards in other countries are unlikely competitors and China, South Korea and Japan are likely to maintain their combined nearly 90% market share.


“In search of lower costs, countries like Vietnam and the Philippines could become larger competitors in the future; similar to how the centre of shipbuilding historically moved from Europe to Japan and onwards to South Korea and China,” says Rasmussen.

BIMCO: Chinese shipyards hit record 47% market share in 2022

In 2022, Chinese shipyards reached a market share of 47% and for the first time exceeded the combined market share

safety4sea.com

 

[beijingwalker]

Half of the world's ships were built in China, China now is the world biggest car maker, train manufacturer and ship builder, next goal should be to dominate aircrafts building.

 

[beijingwalker]

China’s shipbuilding market share exceeds Japan and South Korea combined ​

Sam ChambersFebruary 16, 2023

In 2022, Chinese shipbuilders reached a market share of 47% and for the first time exceeded the combined market share of Japanese and South Korean shipyards, according to new data released by BIMCO.

Ships delivered to new owners by Chinese shipyards in 2022 totalled 14.6m compensated gross tonnes (cgt) of the 30.8m cgt delivered globally. The two other main shipbuilding nations, Japan and South Korea, delivered respectively 4.8m and 7.8m cgt.

Shipyards in China also dominate the orderbook for ships to be delivered in the coming years. The global orderbook currently totals 109.1m cgt, and 45% of those orders are held by Chinese yards compared to 34% and 10% by South Korean and Japanese yards respectively.

Twenty years ago, Chinese shipyards had a market share of less than 10% but a massive capacity expansion during the 2000s propelled the country to the number one spot by 2009, a position the country has battled with South Korea over the ensuing years.
In the short term, yards in other countries are unlikely competitors with China, South Korea and Japan likely to maintain their combined nearly 90% market share, according to Niels Rasmussen, chief shipping analyst at BIMCO.

“In search of lower costs, countries like Vietnam and the Philippines could become larger competitors in the future; similar to how the centre of shipbuilding historically moved from Europe to Japan and onwards to South Korea and China,” said Rasmussen.

The number of shipyards has contracted massively from the boom years of the first decade of the 21st century with the sector now far more risk-averse following many years of losses.

According to data from Clarksons Research, today’s shipbuilding capacity is around 40% lower than a decade ago. There are now only 131 large active yards, down from 321 at the peak of the previous shipyard boom in 2009. Clarksons Research’s monitoring of individual facilities suggests only moderate or marginal capacity increases in the medium term. The shipyard forward orderbook cover has edged up to 3.5 years from 2.5 years in 2020 and prices increased 5% across 2022 but were 15% higher on average in 2022 compared to 2021.

In the past few months, Splash has reported on the reopening of shuttered Chinese yards, STX Dalian and Rongsheng, as well as the reopening of Hyundai Heavy Industries’ shipyard in Gunsan in South Korea, while construction of a RMB20bn ($2.76bn) brand new yard has started in northeast China and will be completed by the end of 2024. The new yard, which will be run by Dalian Shipbuilding Industry (DSIC), will focus on LNG carrier construction.

Norwegian broker Fearnleys has also been examining the state of the yards. In a presentation given last month, Dag Kilen, Fearnleys’ global head of research, noted that among Asia’s shipbuilding powerhouses, Japan was the only nation with comparatively early delivery slots at the moment.

As the decade progresses, Kilen predicted a shipbuilding bottleneck will emerge, which will be a tailwind for all shipping sectors.

Not everyone is convinced about this potential yard crunch. Danish Ship Finance has argued that further consolidation is on the cards as up to 30% of today’s shipyards are on course to run out of orders soon.

“The lopsided nature of the ordering has created a situation where many of the yards that are not building container or LNG carriers are operating at low utilisation rates. Many are delivering vessels without securing new orders,” Danish Ship Finance pointed out in a recent report, going on to highlight how yard capacity is poorly utilised on average. A group of 95 first-tier yards utilised 70% of their capacity in 2022, according to data from Danish Ship Finance. A more numerous group of second-tier yards only utilised 40% of their capacity in 2022 and will use even less in 2023, Danish Ship Finance forecast, as well as predicting that global yard capacity could shrink by 9m cgt – or 18%- by year-end 2024 if yards that are running out of orders are closed the year after their last delivery.

https://splash247.com/chinas-shipbuilding-market-share-exceeds-japan-and-south-korea-combined/

 

[beijingwalker]

BIMCO: Chinese Shipyards Achieve Market Share Record in 2022​

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China's shipbuilding industry continues to grow its market share (CSSC file photo)
PUBLISHED FEB 16, 2023 7:55 PM BY THE MARITIME EXECUTIVE

After decades after China began its concerted efforts to build its competitiveness in the global shipping industry, its shipyards hit a record 47 percent market share in 2022 according to a new analysis from the shipping trade organization BIMCO. According to their report, last year was the first time that Chinese shipbuilders exceeded the combined market share of Japanese and South Korean shipyards.

China initially attracted orders by offering lower costs focusing on the most basic of ships such as bulk carriers. They contributed to the shift away from Europe’s traditional shipbuilders to the lower costs found in Japan, South Korea, and ultimately China. More recently they have invested in new systems and processes to enhance productivity and now are beginning to make entries into the high-value, more complex segments including their first substantive orders for LNG gas carriers and using their first domestic cruise ship construction to develop expertise in the segment. China looks to leverage these competencies to compete in these segments still dominated by the South Koreans and European shipyards.

“Chinese shipyards’ success has been achieved by maintaining a leading position within dry bulk ships and, more recently, establishing themselves as the premier location for building container ships,” highlights Niels Rasmussen, Chief Shipping Analyst at BIMCO. While South Korea is leading with the orders for methanol dual-fueled containerships, China has come on quickly moving in 20 years from 5,000 TEU ships to this week when they are completing construction on two of the world’s largest containerships, each with a carry capacity of over 24,000 TEU. Just today, OOCL named its first new Chinese-built ultra-large vessel while several similar vessels are being readied for delivery to MSC from several Chinese shipyards.

According to BIMCO’s analysis of the data from Clarkson Shipping Intelligence Network, ships delivered to new owners by Chinese shipyards in 2022 totaled 14.6 million Compensated Gross Tonne (CGT), or nearly half of the 30.8 million CGT delivered globally. It is especially significant as China struggled with efforts to control the spread of COVID-19, which included lockdowns that impacted the shipbuilding cluster near Shanghai mostly in May 2022. Despite these disruptions to production, China delivered nearly twice as many CGTs as South Korea (7.8 million CGT). Japanese shipyards continued to slide with Clarkson reporting deliveries of just 4.8 million CGT. Combined South Korea and Japan delivered 12.6 million CGT.

China's market share has been growing consistently over the past 20 years. In 2000, Clarkson calculates they held less than 10 percent of the market, but in 2009 emerged as the market leaders. The last time that China approached the combined level of its next two rivals was in 2013 during the downturn in the shipbuilding industry.

Overall, the Chinese industry holds 45 percent of the global orderbook or 109.1 million CGT. By comparison, South Korea currently has 34 percent of the orders focusing increasingly on the high-value segments including dual-fuel and gas carriers. Japan has a 10 percent market share.

“They also hold a large share of orders for most other ship types but have yet to establish themselves as key players within the gas carrier sector,” notes Rasmussen. BIMCO however expects that it is possible that China could make inroads also into this sector, just like they gradually attracted orders for ultra large container ships.

LNG carriers are currently the second largest ship sector within the global orderbook for ships, and South Korean shipyards remain the market leaders within this sector, holding 79 percent of the order book. Currently, Chinese shipyards hold only 15 percent of the LNG carrier orderbook.

Despite China’s success, BIMCO however warns that cost increases could threaten China’s longer-term position. They point to the potential that lower cost countries like Vietnam and the Philippines could become larger competitors in the future similar to how the center of shipbuilding historically moved from Europe to Japan and onwards to South Korea and China.

BIMCO: Chinese Shipyards Achieve Market Share Record in 2022

After decades after China began its concerted efforts to build its competitiveness in the global shipping industry, its shipyards hit a record 47 perc...

www.maritime-executive.com

 

[beijingwalker]

Chinese shipyard wins order for 10 LNG dual-fuel boxships from MSC​

23 Feb 2023

Chinese manufacturer China International Marine Containers (CIMC) recently confirmed a new order from international shipping line Mediterranean Shipping Company (MSC) for ten 11,500 TEU liquefied natural gas (LNG) dual-fuel container ships, according to China-based news agencies on Friday (17 February).

According to CIMC, Zhoushan Changhong International Shipyard, in which CIMC Leasing (Xinde) Co., Ltd is a shareholder, will build the container ships.

The boxships are expected to be delivered by 2026. The series of container ships will be developed and designed by Offshore Engineering Design & Research Institute of CIMC (ORIC) (CIMC ORIC).

The ships will each have a total length of 335 metres, width of 45.6 metres, depth of 25 metres, a design draft of 12.5 metres, and a design speed of 20 knots.

Each will be equipped with the largest C-type LNG fuel storage tank of its class. The ships will be capable of running on both LNG and traditional fuel to complete a single round trip from China to Europe or China to the US.

Compared with the existing ships of the same type, the series of container ships can save about 5% of fuel. The 10 ships will be classified by classification societies DNV, Lloyd’s Register (LR) and Bureau Veritas (BV).

According to Yin Xunbin, general manager of CIMC ORIC, the ships will not only adopt dual power propulsion capabilities of using LNG and traditional fuel oil, but also be ammonia-ready.

https://www.manifoldtimes.com/news/chinese-shipyard-wins-order-for-10-lng-dual-fuel-boxships-from-msc/