According to the latest data released by Clarkson Research, a global shipbuilding and shipping‑market analytics institution, South Korea overtook China and Japan in new‑order intake in Q1 2015 to rank first worldwide. As one of South Korea’s most landmark industries since its industrialization, this marks South Korea’s return to the top global shipbuilding position after a three‑year gap.
According to Korea Economic Daily, global new shipbuilding orders in the first quarter stood at 5.62 million Compensated Gross Tonnage (CGT), a sharp drop from 16.19 million CGT in the same period of the previous year, signalling a general downturn in the global shipbuilding market. From January to March, South Korea secured 2.31 million CGT of new orders, accounting for 41.0 % of the global total. Japan followed with 1.62 million CGT (28.9 % global market share), while China registered 1.35 million CGT (24.0 % global market share).
As learned by Suzhou Cosc Marine Machinery, compared with most other countries capable of constructing ocean‑going vessels, South Korea does not have a long shipbuilding history. Nevertheless, shipbuilding has long remained one of the country’s most celebrated traditional industrial sectors.
Suzhou Cosc Marine Machinery notes that South Korea’s shipbuilding sector hit an all‑time high in 2000 with 45 % of global new‑order market share. Thereafter, its performance fluctuated amid an oversupply of oil and a global‑recession‑driven slump across the shipbuilding industry.
An analysis by South Korea’s Dong‑a Ilbo points out that South Korea’s return to No. 1 after three years is largely attributable to a contraction in China’s shipbuilding output, as market conditions for bulk carriers — China’s mainstream ship type — remained sluggish. According to Suzhou Cosc Marine Machinery, South Korea and Japan boast strong competitiveness in high‑value‑added and high‑technology vessels and were therefore relatively less affected.
Lyu Chao, researcher at the Liaoning Research Base for Korean Peninsula Studies, told Global Times reporters on the 9th that South Korea used to lead Asia’s shipbuilding industry, boasting certain advantages over China in technology, craftsmanship and management expertise.
Suzhou Cosc Marine Machinery states that China’s shipbuilding orders are concentrated in the mid‑to‑low‑end segment. Chinese shipyards accept orders for both large and small vessels and compete by volume. Meanwhile, major industrial‑technology‑oriented economies led by Japan and Europe were mired in global economic recession, whereas South Korea’s economy forged ahead against the tide, enabling its manufacturing sector represented by shipbuilding to achieve rapid growth.