BEIJING: China’s shipbuilding industry will continue to lead the global race this year on the back of its supply chain growth, market expansion, and intelligent and green transition over the the coming years, say analysts and industry sources.
The industry has become adept at constructing all types of mainstream vessels, reflecting its versatility and innovative capabilities, they said.
Their view is borne out by data. In terms of volume, orders for new ships across the global industry reached 41.49 million compensated gross tonnage (CGT) in 2023, according to the latest data released by the London-based shipping services provider Clarkson Plc.
Chinese shipbuilders took the lead with a 59% share of the global share, accounting for 24.46 million CGT, while South Korean shipbuilders accounted for 24%, amounting to 10.01 million CGT.
South Korea’s shipbuilding industry trailed China for the third consecutive year in 2023.
The greatest strength of China’s shipbuilding industry lies in its capabilities, said Huang Jiantao, an analyst at the Shanghai Merchant Ship Design and Research Institute, a unit of China State Shipbuilding Corp.
Chinese shipyards have been expediting their shift toward green and intelligent shipbuilding while bolstering independent design and industry-supporting capabilities, especially in the areas of building liquefied natural gas carriers, car carriers, core components and new materials, said Huang.
The shipbuilding industry is often referred to as the “crown jewel of integrated industries”. It involves a multitude of components, a lengthy supply chain and high levels of industrial interconnectivity, encompassing over 50 different sectors, including steel, nonferrous metals, machinery and electronics, said the Beijing-based China Machinery Industry Federation.
China’s shipbuilding industry has increasingly focused on domestic self-reliance, particularly in its industrial and supply chains.
This approach has substantially cut construction times and costs during various projects, said Zeng Ji, a professor of shipbuilding at Shanghai Maritime University.
“In this market, efficiency is critical as shorter delivery times for vessels often attract more orders from shipowners,” said Zeng, adding that by producing materials domestically, Chinese shipyards have not only stimulated the growth of their industrial chain but also increased their profitability.
This strategy will continue to create a mutually beneficial scenario for both shipyards and their global clients. — China Daily/ANN
