While Korean shipyards have filled years of backlog with high-value vessels such as liquefied natural gas (LNG) carriers, global shipping companies are funneling container ship orders to Chinese shipyards. As Chinese shipyards expand capacity on a large scale, they are meeting the delivery schedules global container lines want and monopolizing orders.
Chinese shipyards are covering all sizes, including ultra-large, high-value container ships that used to be the domain of Korean shipyards. Notably, even Taiwan's shipping companies—despite the countries' hostile political ties—have begun placing orders with Chinese shipyards.
On the 25th, according to Clarksons Research of the United Kingdom and the shipbuilding industry, in the first half of this year China took more than 80% of new global container ship orders (about 380 vessels). Korea secured 10% to 15% of new container ship construction.
As major global carriers such as MSC and CMA CGM resumed orders for large container ships this year, Chinese shipyards are absorbing the volume.
MSC, the world's largest container line headquartered in Switzerland, in June placed a firm order with privately owned Hengli Group's Hengli Heavy Industries for 10 container ships of about 20,000 TEU (1 TEU equals one 20-foot container). It also set an option for 10 additional vessels.
The ships built by Hengli Heavy Industries are ultra-large container ships with LNG dual-fuel propulsion. Container ships of 18,000 TEU or more are generally classified as ultra-large. In particular, 20,000 TEU or more are also called mega container ships. Hengli Heavy Industries plans to deliver these vessels starting in the first half of 2029.
MSC is the world's largest container shipping company, operating about 1,000 container ships. Its current orderbook of more than 120 container ships is all reported to be under construction at Chinese shipyards, including Hengli Heavy Industries.
France's CMA CGM, the world's No. 3 carrier, also ordered six small and mid-size container ships from Hengli Heavy Industries in June. CMA CGM has in recent years been concentrating orders for container ships of 20,000 TEU or more—previously built mainly by Korean shipyards—at Chinese shipyards. In November last year, it ordered six 22,000 TEU LNG dual-fuel container ships (with options for four more) from Dalian Shipbuilding under China State Shipbuilding Corporation (CSSC), China's largest shipbuilding group.
In May and July this year, CMA CGM took delivery of the first and second vessels among the 10 ultra-large 24,000 TEU container ships it ordered from Yangzijiang Shipbuilding in 2023. They are the largest container ships currently sailing under the French flag.
Denmark's Maersk, the world's No. 2 carrier, in February ordered eight mid-size 18,600 TEU container ships from privately owned Chinese yard New Times Shipbuilding. Deliveries are scheduled for 2029 to 2030.
Industry officials cite the ability to deliver by the first half of 2029 as the main reason most new container ship orders this year are heading to Chinese shipyards. Chinese yards have rapidly expanded docks (building berths) and equipment, greatly boosting capacity from ultra-large container ships to small feeder ships serving both major and smaller ports. Because Chinese shipyards have the bandwidth to build a variety of vessel types compared with Korean shipyards, container lines have little choice but to go to China.
Another factor drawing orders to China is the improvement in Chinese shipyards' technology for building environmentally friendly dual-fuel container ships.
Korea's three major shipbuilders currently have built up years of backlog focused on high-value, high-priced vessel types such as LNG carriers and FLNG (floating LNG production, storage and offloading facilities). Delivery slots in the first half of 2029 are also filled mainly with high-priced gas carriers.
Analysts say the recent move by Taiwan's Wan Hai Lines to start ordering container ships from Chinese shipyards also stems from different delivery possibilities. Wan Hai Lines had mainly entrusted construction to Korean shipyards, but in December last year it chose a Chinese yard for the first time, ordering six 6,000 TEU container ships from Huangpu Wenchong Shipbuilding under CSSC.
This month, Wan Hai Lines also ordered eight container ships worth a total of $980 million from Waigaoqiao Shipbuilding under CSSC. These are environmentally friendly container ships of 9,200 TEU to 11,000 TEU. These vessels are also slated for delivery starting in 2029.
Lee Jae-hyeok, an analyst at LS Securities, said, "Korean shipyards are expected to continue filling second-half 2029 slots mainly with gas carriers under their strategy of selective, strategic ordering," adding, "From deliveries in 2030 and beyond, they could look for opportunities centered on high-value container ships."