South Korean shipbuilders, including HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and Samsung Heavy Industries (SHI), have secured container ship orders worth a combined 3 trillion won ($2 billion) over the past four days. While China maintains a dominant grip on more than 80 percent of the global container ship market, rising tensions between the United States and China are fueling expectations that South Korean firms could capitalize on shifting demand.

HD Hyundai Heavy Industries' Ulsan shipyard. /News1

HD Hyundai Heavy Industries (HD HHI), the parent company of HD KSOE, said on Apr. 28 that it had secured orders for 22 container ships valued at 2.5354 trillion won between Apr. 23 and Apr. 26 from shipping companies based in Asia and Oceania. Its subsidiaries, HD Hyundai Mipo Dockyard and HD Hyundai Samho Heavy Industries, booked contracts for 16 and six vessels, respectively.

The vessels awarded to HD Hyundai Mipo Dockyard comprise 10 ships with a capacity of 2,800 twenty-foot equivalent units (TEUs) and six ships with a capacity of 1,800 TEUs. All are classified as feeder container ships, typically under 3,000 TEUs, which service routes between major hub ports and smaller regional ports. Chinese shipbuilders have traditionally dominated this segment, but HD Hyundai Mipo Dockyard has emerged as the global leader this year, winning 16 of the 33 feeder ships ordered worldwide.

SHI also announced on Apr. 25 that it had signed a 561.9 billion won contract with an Asian shipowner to build two container ships. Year-to-date, Samsung has secured orders for 18 vessels, including one liquefied natural gas (LNG) carrier, nine shuttle tankers, two ethane carriers, four oil tankers, and two container ships, totaling $2.6 billion (approximately 3.7 trillion won).

The administration of U.S. President Donald Trump, who returned to office in January, is working to revive the domestic shipbuilding industry and has sought greater cooperation with South Korean shipbuilders amid efforts to counter China’s dominance in the sector.

Earlier this year, the United States Trade Representative (USTR) announced plans to levy port fees on shipping companies operating Chinese-built vessels, beginning in the second half of 2025, with phased annual increases.

“There is a growing trend among shipowners to place more orders with South Korean builders, shifting away from China, which had previously been favored due to lower costs,” a South Korean shipbuilding industry official said.