SIMIC

CHINESE shipbuilders have secured substantial orders for large containerships from global shipping giants for the first time, reports Soeul's BusinessKorea.

The Chinese government has played a pivotal role in supporting its shipbuilders, propelling China to become the world's leading builder of mega ships in the first half.



The success didn't solely come from Chinese carriers; in a notable shift, Denmark's Maersk, the world's second-largest shipping company, and France's CMA CGM, the third-largest, also placed orders with Chinese yards in the first half.



Maersk, which had previously ordered containerships of 5,000 TEU or less from China, expanded its collaboration and commissioned a 9,000-TEU methanol-powered containership for the first time.



The Chinese government's support and efforts bore fruit in the large containership market, especially evident in the CMA CGM deal, which was strengthened during French President Emmanuel Macron's visit to China in April, where he met President Xi Jinping.



As a result of the surge in orders from international shipping companies, China now commands an impressive 46 per cent share of the large containership market (over 9,000 TEU) in the first half of this year, overtaking Korea's share of 38 per cent.



Korea, which had long dominated the large containership market, now faces increasing threats from China's rise. Five years ago, during the first half of 2018, Korea enjoyed a commanding 56 per cent share, while China held only 11 per cent and Japan 33 per cent.



China is also making significant strides in the LNG carrier sector, as its market share has risen considerably from a single-digit to nearly 30 per cent.



In 2022, Korea's share of the LNG carrier market, which used to be over 90 per cent, dropped to 67.9 per cent.



While Korea managed to regain the lead with an 88 per cent share in the first half of this year, experts warn against complacency, as China continues to challenge its position.



The competition between these shipbuilding giants remains fierce, and the landscape may continue to shift in the coming years.