China’s Shipbuilding Market Share Falls for the First Time in Five Years
According to the South China Morning Post (SCMP) on January 9, China remained the world’s largest shipbuilding nation in 2025. However, its global market share declined for the first time since 2020. The development comes amid U.S. threats to impose port fees on vessels owned, operated, or built in China, adding further uncertainty to the global maritime transport market.
Despite maintaining its leading position in terms of scale, the decline in market share highlights growing pressure on China’s shipbuilding dominance from geopolitical tensions and trade policy risks.
New Orders Drop Sharply, Market Share Narrows
Data from maritime consultancy Clarksons show that Chinese shipyards secured 35.4 million compensated gross tons (CGT) of new orders in 2025, down 35% compared with the previous year.
As a result, China’s global market share fell from 70% in 2024 to 63% in 2025, marking the first decline in five years. Clarksons noted that this trend clearly reflects the impact of non-market factors on a highly globalized industry such as shipbuilding.
Total global new shipbuilding orders in 2025 also declined by 27% year-on-year to 56.4 million CGT, indicating widespread disruption across the industry.
South Korea Gains Momentum, Japan Loses Ground
While China’s share weakened, South Korea—the world’s second-largest shipbuilding nation—recorded a notable improvement. Its market share increased from 17% to 21%, with new orders reaching 11.6 million CGT, up 8% year-on-year.
In contrast, Japan experienced a sharp downturn, with new orders plunging nearly 53% to just 2.8 million CGT, equivalent to around 5% of global market share, Chinese shipbuilding industry.
In terms of product mix, China continues to dominate bulk carriers and container ships and secured more tanker orders than South Korea. Meanwhile, South Korean shipbuilders maintain their leading position in gas carriers—particularly LNG vessels—and are expanding into naval shipbuilding to preserve profit margins.
U.S. Port Fee Threats Fuel Geopolitical Pressure on Shipbuilding
Global shipbuilding activity became increasingly volatile from early 2025 after Washington announced plans to impose port fees on vessels linked to China. The move prompted Beijing to roll out countermeasures in subsequent months, intensifying stress across maritime supply chains.
Although the U.S. and China reached an agreement to temporarily suspend these measures for one year following negotiations in late October 2025, uncertainty continues to weigh on shipowners and shipyards, Chinese shipbuilding industry.
Clarksons identified U.S.-imposed restrictions as one of the key factors weakening China’s shipbuilding activity over the past year.
Industry Restructuring and Long-Term Strategic Competition
Amid intensifying competition, Seoul and Washington reached a USD 150 billion shipbuilding cooperation agreement last year. Under the deal, South Korean companies will help revive U.S. shipyards and provide maintenance services for the U.S. Navy, strengthening Washington’s defense industrial capacity.
Meanwhile, Japan is accelerating industry restructuring. Market leader Imabari Shipbuilding has completed its acquisition of Japan Marine United, aiming to fast-track the development of vessels powered by alternative fuels such as LNG in response to increasingly stringent environmental standards.
Developments in 2025 underscore that the global shipbuilding industry is no longer driven solely by economic cycles, but is increasingly shaped by political dynamics and strategic competition—posing long-term challenges for both companies and governments worldwide.
