Shipyards across China are experiencing a resurgence, producing ships at a scale not seen since 2008. After more than a decade of decline following the global financial crisis, the shipbuilding sector has entered a new golden age.

According to broker Arrow, the combined shipbuilding capacity of China, South Korea, and Japan has reached 35.6 million CGT per year, a 20% increase from 29.5 million CGT the previous year. Most of this growth is concentrated in China and South Korea. However, despite these gains, current capacity is still about 30% below the peak levels of the late 2000s shipbuilding boom.

Chinese shipyards remain the top choice for new bulkers, tankers, container ships, and gas carriers, with 441 orders placed in the first half of the year, accounting for 66% of all newbuilding orders globally, according to Rebecca Galanopoulos Jones, Veson’s senior content analyst.

Stuart Nicoll, a director at Maritime Strategies International (MSI), noted that Chinese newbuild output has surged in 2024, with deliveries averaging 15.5 million GT in the first five months of the year, compared to an average of 10.1 million GT during 2020-2023.

Nicoll also mentioned that the weak construction sector in China is reportedly releasing a large pool of workers into the shipbuilding industry. He highlighted that recent restructuring and consolidation in the shipyard sector have improved the organization of material flows, contributing to this growth.

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