China’s Shipbuilders Secure 1,421 New Orders in 2025, Retain Global Lead despite Market Slowdown

The global shipbuilding market experienced a notable slowdown in 2025, with new ship orders declining sharply amid economic uncertainty and geopolitical pressures. Despite these challenges, China’s shipbuilding industry retained its position as the world’s largest by order volume, even as its market share recorded its first decline in five years.

According to data released by Clarksons on January 7, global new ship orders in 2025 totaled 2,036 vessels with a combined 56.43 million compensated gross tonnage (CGT), representing a 27% drop from 76.78 million CGT recorded in 2024.

Chinese shipyards secured 1,421 vessels totaling 35.37 million CGT, a 35% year-on-year decline, but still maintained a commanding 63% share of global orders, ranking first worldwide. South Korean shipyards ranked second, securing 247 vessels totaling 11.60 million CGT, marking an 8% year-on-year increase and capturing 21% of the global market.

December Orders Signal Market Recovery Momentum

In December 2024, global new ship orders reached 264 vessels totaling 8.09 million CGT, reflecting a 69% increase compared to December 2023 and a 23% rise from November 2024 levels.

During the month, Chinese shipyards secured 223 vessels totaling 5.71 million CGT, accounting for 71% of global orders, while South Korean yards captured 23 orders totaling 1.47 million CGT, or 18% market share.

High-Value Vessels Boost South Korea’s Position

South Korean industry sources highlighted that although South Korea lagged behind China in total order numbers, it maintained a strategic focus on high-value-added vessels. In 2025, the average CGT per vessel for South Korean shipyards stood at 47,000 CGT, nearly double China’s 25,000 CGT, underscoring South Korea’s emphasis on technologically complex and premium ship types.

While China recorded a 35% decline in orders, South Korea achieved an 8% increase, marking the first narrowing of the market share gap between the two countries in five years.

China’s First Market Share Decline in Five Years

The year 2025 marked the first decline in China’s global shipbuilding market share after years of consistent growth. China’s share stood at 51% in 2021, gradually rising to 71% in 2024, while South Korea’s share fell from 32% to 14% over the same period. In 2025, the gap narrowed as China’s share slipped to 63% and South Korea rebounded to 21%.

Clarksons noted that China’s shipbuilding industry faced unprecedented external pressures, particularly due to U.S. Section 301 policies targeting Chinese-built vessels and shipbuilding activities.

Vessel Segment Performance

By vessel type, China continued to dominate several key segments. Its share of bulk carrier orders exceeded 80% for the first time, while it secured 68% of global container ship orders, including both feeder and ultra-large vessels.

China also overtook South Korea in oil tanker orders by year-end, supported by strong national shipbuilding capacity and large bulk orders. However, liquefied gas carrier (LNG and LPG) orders shifted toward South Korea, as Chinese shipyards faced full orderbooks and longer delivery timelines. South Korea’s ability to offer earlier deliveries proved decisive in this high-complexity segment.

Impact of U.S. Section 301 Investigation

In April 2024, following petitions by five U.S. labor unions, the Office of the U.S. Trade Representative (USTR) initiated a Section 301 investigation into China’s maritime, logistics, and shipbuilding industries. Draft measures released in February 2025 significantly disrupted global newbuilding orders, briefly allowing South Korean shipyards to lead global order intake in March.

However, after the USTR announced a revised port fee framework in April 2025, easing charges on Chinese-built vessels, shipowners returned to Chinese shipyards. China reclaimed nearly 70% of global new ship orders in April and maintained monthly leadership thereafter.

In November, the USTR suspended Section 301 measures for one year following bilateral agreements between China and the United States, further stabilizing the newbuilding market.

Orderbook and Newbuilding Prices

By the end of December, the global orderbook reached 173.91 million CGT, up 3.12 million CGT from November. China’s order backlog rose to 107.48 million CGT, maintaining a 62% global share, while South Korea’s backlog stood at 35.12 million CGT, representing 20%.

Newbuilding prices remained stable, with the Clarksons Newbuilding Price Index reaching 184.65 points, nearly 47% higher than levels recorded five years ago.

Large LNG carriers remained priced at $248 million, VLCC prices increased to $128 million, while ultra-large container ship prices eased slightly to $262 million.