China's shipbuilding lead endures, but market share dips amid US port-fee threat

South China Morning Post

6 days ago

China retained its leading position in the global shipbuilding market during the first half of the year, according to data from the industry association, despite a decline in market share caused by buyers' concerns over the threat of
US port fees on Chinese-built vessels.
It secured 68.3 per cent of new vessel orders in the global market in the first six months of the year, compared with 74.7 per cent in the same period last year, China's shipbuilding industry association said on Monday. The order volume fell by 18.2 per cent, year on year, to 44.33 million deadweight tonnes.
Analysts have attributed the decline in market share to a decrease in orders for oil and LNG tankers, but still believe in China's competitive advantages.
'Shipowners are cautious about choosing shipyards for their tanker orders, given the US' prominent role in oil and LNG export,' said Wu Jialu, chief analyst at Citic Futures.
Considering that the US port fee targeting Chinese-built vessels is set to
take effect on October 14 , Wu said such concern could have a medium- to long-term impact on China's shipbuilding industry.
The US, a major oil exporter, reached a record high in crude oil exports in 2024, exceeding an annual average of 4.1 million barrels per day, according to data from the US Energy Information Administration.
It also remained the world's largest LNG exporter in 2024, exporting an average of 11.9 billion cubic feet per day, the data showed.