Korean shipbuilding must resist standardisation push, says Hanwha executive

Speaking at January’s maritime-insight Executive Meeting 2025 in Gothenburg, head of Hanwa Ocean Europe, Claire Wright, said Japanese shipbuilding’s retreat to predominantly domestic bulk carrier construction serves as a cautionary example, with its market share reduced to parity with European yards despite its historical leadership position.

"Korea can learn lessons from Japan’s transition, but as Korean shipbuilders, we have to take a different route when looking to remain relevant to customers in the next 20 years," said Ms Wright, highlighting Hanwha’s ability to transfer technology from its defence and aerospace divisions to enhance shipbuilding capabilities, particularly in complex vessel integration.

Painting a positive demand picture, Ms Wright said energy majors’ 15-year age limits for chartered vessels, combined with average fleet ages exceeding 12 years in key segments, means replacement demand is building despite today’s suppressed demolition rates.

Geopolitical disruptions, including Red Sea constraints and Russian trade restrictions, have also created a significant shadow fleet of older vessels, that will potentially drive substantial renewal demand once trade patterns normalise.

Energy transition requirements create opportunities for Korean yards in complex vessel segments, Ms Wright added, noting increasing demand for retrofit capability and flexible fuel systems in newbuilding designs.

Current market segmentation sees China dominating bulk carrier, tanker and container ship newbuilding, while Korea leads in gas carriers and specialised vessels.