China dominated global shipbuilding in 2024, expanding in high-value markets

According to the Veson Nautical 2024 review (data as of November), China attracted substantial orders across bulk carriers, tankers, LPG carriers and container vessels. Analysts anticipate increased activity in additional markets, including offshore vessels, where renewed interest in newbuildings is evident.

China’s remarkable performance in 2024 is attributed to competitive pricing, recognised quality and increased capacity, bolstered by major investments in expanding existing yards and reopening dormant facilities.

Dominance in traditional shipping markets

Veson Nautical data shows that China secured 388 bulk carrier orders in 2024, accounting for 75% of global activity.

Japan and the Philippines followed with market shares of 16% and 3%, respectively. Japanese shipbuilders, despite their expertise in dry bulk newbuildings, faced challenges in competing due to limited capacity and higher pricing, noted Veson Nautical senior content analyst Rebecca Galanopoulos.

In the tanker market, China captured 74% of the global market with 322 vessel orders in 2024. South Korea maintained a 17% share, while Vietnam increased its presence to 6%. Japanese yards saw a decline, holding just 3% of the market.

China’s dominance was even more pronounced in container vessel orders, with 259 vessels representing 81% of global activity. South Korea, which has ramped up its focus on container vessels, secured a 16% market share. Ms Galanopoulos highlighted that China’s competitive pricing and slot availability made it the preferred choice for many shipowners.

China surprises in the LPG sector

A key highlight from the Veson Nautical review is China overtaking South Korea in the LPG carrier sector. While South Korean yards have traditionally relied on high-value ships like gas carriers to counter China’s competitive edge, 2024 presented a different story, at least in the case of LPG vessels.

According to Veson Nautical maritime analyst Jarl Milford, Chinese yards secured 62 LPG carrier orders, edging out South Korea’s 59. This shift gave China a 48% market share compared with South Korea’s 46%. “China has become a substantial builder in the LPG market,” Mr Milford noted.

Meanwhile, South Korea retained its lead in the LNG carrier market, holding a 62% share versus China’s 38%. However, Chinese yards continue to narrow this gap with ongoing improvements in quality and capacity.

Emerging strength in the offshore sector

China also excelled in the offshore support vessel (OSV) sector in 2024, adding 32 orders to its orderbook, a remarkable 256% year-on-year increase.

Chinese yards have become more appealing for owners looking to renew their fleets in 2024, primarily due to lower newbuilding costs, said Veson Nautical valuation analyst Peter Edwards. He predicted an influx of offshore vessel orders for Chinese builders, crediting their consistent improvements in quality and production efficiency.

Mr Edwards added that traditionally dominant Norwegian OSV builders, such as Vard and Ulstein, may struggle to compete with the lower costs offered by Chinese and other Asian yards, for vessels with similar specifications and features.