Korea's shipbuilding industry is expected to move more aggressively to win container ship orders. While it has mainly targeted the liquefied natural gas (LNG) carrier market, where prices are high and profitability is strong, the chance of securing more orders for container ships has grown as the United States has recently tightened checks on Chinese shipbuilders.
On the 28th, according to Clarksons Research, Korean shipbuilders' container ship orders last year totaled 5,259,817 compensated gross tons (CGT) (105 ships), up 128% from a year earlier. As the Office of the United States Trade Representative (USTR) decided last year to impose port entry fees on ships that are Chinese-flagged or built in China, shipping companies are seen to have entrusted container ship construction to Korean shipbuilders.
Although the USTR's fee on Chinese-built ships has been deferred for one year, many in the industry say Korean companies are likely to benefit due to uncertainty over the resumption of the restrictions.
Korean shipbuilders have increased orders, but China still commands an overwhelming share of the global container ship market. China's container ship order share, which was 63.6% (276 ships) in 2022, rose to 87.7% in 2024. During the same period, Korea's share fell from 26.5% to 9.6%.
Korea has focused on winning LNG carrier orders, where it has a technological edge over China. Margins are higher than for container ships, and demand has been rising quickly as the share of eco-friendly energy grows worldwide. Clarkson projects demand for 115 LNG carriers this year, about three times the 37 ordered last year.
Korean shipbuilders are expected to focus on container ship orders along with LNG carriers this year to improve results. LNG carriers have higher prices and profitability, but the overall market size for container ships is much larger.
According to the International Group of Liquefied Natural Gas Importers (IGNI), as of last year the global LNG carrier fleet (ships owned and operated by each country or shipping company) numbered 831, while the container ship fleet is close to about 7,000.
An industry official said, "It is difficult to meet targeted orders or results with LNG carriers alone," adding, "We will also devote full efforts to winning container ship orders, where demand for replacing aging vessels and for newbuilds has been steadily increasing."
Yang Jong-seo, senior researcher at the Overseas Economic Research Institute of The Export-Import Bank of Korea, said, "Korean shipbuilders nearly faced difficulties last year as LNG carrier volumes fell, but they caught a breather thanks to increased container ship orders," adding, "With the likelihood rising that the U.S. will maintain its sanction stance on Chinese-built ships, shipbuilders will actively move to target the container ship market."