26 June 2024 (Lloyd's List) - CHINA has attained unrivalled supremacy in shipbuilding not seen since Japan’s heyday in the last century.

Clarksons’ latest data shows Chinese yards have taken 53% of global orders in compensated gross tonnage terms since 2020. In the first five months of this year, that share was even higher at 61%, compared with South Korea’s 28% in second place.

“Such a market-leading position has not been seen since Japanese yards headed the industry in the 1960s-80s,” said the shipbroker in its latest shipbuilding report.

In 2000, Chinese players’ order market share was just 8%.

This illustrates the country’s rapid rise in the sector over the past two decades — backed by factors including huge cost competitiveness and supportive policies, it added.

The growing dominance is also seen in the increasing complexity of vessels being built by Chinese yards.

Dry bulkers, typically more straightforward to build, have been the bread and butter for Chinese shipyards. Since 2020, they have taken 68% of orders for such ships, Clarksons’ data shows.

In the past three-and-a-half years, however, China’s builders have also established a leading edge in other, more sophisticated vessel segments.

They have won 59% of containership orders, 53% for tankers and 84% for vehicle carriers.

Even in the gas carrier sector, dominated by their South Korean peers, the Chinese market share has risen from 4% in the 2000s to 26% since early 2020, or 38% year-to-date, according to Clarksons.

More notably, the data show Chinese yards have also secured 54% of alternative-fuel-capable ship orders since 2020, as the industry shifts towards a greener future.

Industry experts have said the scale and cost strength of the Chinese shipbuilding industry make it hard to outdo.

“China’s competitive advantage in this industry will be hard to erode with potential protectionist policies, such as the imposition of tariffs — at least in the short term — and would trigger inflationary pressures to trade if it took place,” BRS senior analyst Tamara Apostolou told Lloyd’s List recently.

He was responding to rising Western concerns over such dominance, highlighted by the US’ ongoing Section 301 investigation into China’s maritime sector, including shipbuilding.

The move comes amid Washington’s desire to unite more friendly nations to cut reliance on Chinese manufacturing and supply chains.

Earlier this month, South Korean conglomerate Hanwha Group agreed to acquire Jones Act shipbuilder Philly Shipyard from Norwegian investor Aker for $100m in cash, as the US seeks to partner with Asian allies to expand domestic shipbuilding capacity.