China’s shipbuilding industry has seen a sharp decline in new vessel orders this year, with total contract volume dropping 73% year-on-year as global demand weakens and U.S. trade restrictions tighten. Meanwhile, South Korea’s major shipyards have managed to increase their share of global newbuilding orders, narrowing the gap with China.
According to data from Clarkson Research released on October 12, China’s total shipbuilding orders reached 3.8 million compensated gross tons (CGT) in the second quarter of last year, but fell drastically to 2.693 million CGT in the third quarter of 2024. Orders continued to decline this year, dropping from 977,000 CGT in the first quarter to 1.496 million CGT in the second and 1.047 million CGT in the third.
Analysts attribute the slump to reduced demand for container and LNG carriers — segments that previously fueled China’s rapid order growth — as well as to tightened restrictions by the U.S. on vessels with Chinese-manufactured components.
In contrast, South Korea’s shipbuilders, led by HD Korea Shipbuilding & Offshore Engineering (KSOE), Samsung Heavy Industries, and Hanwha Ocean, have secured stronger order momentum. Korean yards won a total of 5.32 million CGT during the first nine months of 2025, compared to 4.13 million CGT a year earlier. Their global market share rose from 13.3% last year to approximately 25.9%, the highest level in over three years.
Industry experts suggest the downturn in China’s output may persist through 2026, as new vessel demand remains muted amid sluggish global trade recovery. The U.S.-China trade tensions and shipping decarbonization regulations have also hindered Chinese yards’ competitiveness in high-value-added segments.
In response, Beijing is reportedly expanding its research and development budget for shipbuilding by 40%, while promoting domestic LNG carrier and offshore energy projects to offset lost export volume.
