South Korea’s share of global shipbuilding orders is expected to hit an eight-year low in 2023, the lowest since 2016, when the global shipbuilding industry faced a severe downturn, struggling with order shortages and restructuring. The country’s order volume is projected to amount to just one-quarter of that of its main competitor, China.
According to Clarkson Research, a British firm analyzing shipbuilding and maritime market trends, a total of 60.33 million compensated gross tonnage (CGT), or 2,159 vessels, were ordered globally between January and November this year. S. Korea secured 1.92 million CGT, or 248 vessels, during this period. The country’s global market share is expected to fall below 20% this year, marking its lowest level since 2016, when it stood at 15.5%.
China, South Korea’s main rival, recorded an order volume of 41.77 million CGT, or 1,518 vessels—more than four times S. Korea’s total. The order volume gap between the two countries has widened to 30.85 million CGT, the largest ever recorded. By market share, China holds 69%, while S. Korea accounts for 18%.
Industry officials said S. Korean shipbuilders, with order backlogs exceeding three years’ worth of construction, had limited dock space and had to be selective about new orders. However, some experts argue that maintaining a basic level of order volume is essential for sustaining competitiveness in the market.
Despite the drop in market share, South Korea’s “Big Three” shipbuilders have reported strong financial results driven by their existing orders.
HD Korea Shipbuilding & Offshore Engineering, including its subsidiaries Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries, secured a total of $205.6 billion worth of orders so far this year—152.2% of its annual target of $135 billion. Samsung Heavy Industries and Hanwha Ocean also posted solid performances, with $68 billion and $81.5 billion in high-value ship orders, respectively.
