Chinese officials released figures for the shipbuilding industry in the first nine months of 2024 and reported that its shipyards have dominated new orders and extended their global lead. The figures will no doubt further fuel growing global sentiment against China’s shipbuilding dominance and specific protests by business groups in the United States and Canada.
The China Association of National Shipbuilding Industry (CANSI) reported that its shipyards had received almost 75 percent of the total orders placed in 2024 or a total of 87.11 million dwt. The report says volume has increased almost 52 percent from 2023 as China continues to increase its shipbuilding output. They estimated that the Chinese company now accounts for 61.4 percent of global newbuild orders or a total of 193.3 million dwt.
The report highlights that China currently leads orders for 14 of the 18 major types of shipbuilding projects and that many of its shipyards are exceeding their annual targets. Major companies are adding additional capacity, helping China increase its shipbuilding output by more than 18 percent in the first nine months of 2024. Chinese shipbuilders have completed 36.34 million dwt so far 2024.
Chinese media reports cite the country’s well-established supply chain, its ability to deliver vessels on time and its cost-cutting efforts. However, critics point to a heavily subsidized state-controlled industry, while arguing that commercial shipbuilding is being used to support the rapid growth of the Chinese navy. Most shipbuilding is carried out by multiple companies controlled by China State Shipbuilding Company (CSSC), a state-controlled company that continues to move to consolidate its dominance. It recently announced a reorganization to further absorb its subsidiary China Shipbuilding Industry Corporation.
South Korea has long been China’s only major rival, but recent data shows it is declining. September figures just released by Clarkson Research say South Korean yards accounted for just 12 percent of orders placed in the month. Order volume overall decreased by 25 percent year-over-year, but 90 ships were contracted, 65 destined for China and only 14 for South Korea. China won orders worth 2.48 million CGT compared to only 340,000 from Korean yards.
Clarkson estimates that China has 55 percent of the global shipbuilding portfolio, while Korea has 26 percent of the orders. Japan is a distant third.
The U.S. Trade Office is reviewing a complaint filed by a group of unions, including steelworkers, that cites China for unfair trade practices and state subsidies for the industry. They are calling for the United States to impose a tariff on ships built in China, which was also adopted by trade groups in Canada. The Canadian Shipbuilding and Marine Industries Association (CMISA) called in late August for the Canadian government to impose a 100 percent tariff on ships built in China.
Chinese officials have characterized the US complaint as protectionism. They said the problems in the American shipbuilding industry are long-term endemic problems, going far beyond China’s competition.
Source: https://www.maritime-executive.com/article/china-dominates-shipbuilding-in-2024-booking-three-quarters-of-orders?mod=djemlogistics_h
