U.S.-China Tensions Boost Korean Shipbuilding Market Share
HD Korea Shipbuilding & Offshore Engineering and Samsung Heavy Industries have secured container ship orders worth over 3 trillion won in four days. The Korean shipbuilding industry is showing signs of reclaiming the container ship market, which China had dominated, as the United States intensifies its shipbuilding and shipping regulations against China.
HD Korea Shipbuilding & Offshore Engineering announced on April 28 that it had recently signed a contract to build 20 container ships for an Oceania-based shipping company. The shipping company that ordered the container ships is believed to be Capital Maritime, a Greek shipping company.
The container ships to be built by HD Korea Shipbuilding & Offshore Engineering include four 8,400 TEU vessels (1 TEU is equivalent to one 20-foot container), eight 2,800 TEU vessels, and six 1,800 TEU vessels. HD Hyundai Mipo Ulsan Shipyard will build ten 2,800 TEU and six 1,800 TEU vessels, while HD Hyundai Samho’s Yeongam Shipyard will construct two 16,000 TEU and four 8,400 TEU vessels. They plan to deliver these to the client by the first half of 2028.
HD Korea Shipbuilding & Offshore Engineering secured orders for two 2,800 TEU container ships on April 23 and two 16,000 TEU container ships the following day on April 24, achieving a total order of 22 container ships.
Samsung Heavy Industries also signed a contract worth 561.9 billion won with an Asian shipowner to build two container ships. The client is presumed to be Wan Hai Lines, a Taiwanese shipping company. Samsung Heavy Industries plans to deliver the ships to the client sequentially by January 2028.
The industry views this as the beginning of benefits from the U.S.-China shipping war, particularly in small and medium-sized container ships. In fact, HD Hyundai Mipo, which specializes in building small and medium-sized container ships, has secured orders for 16 out of 33 feeder container ships ordered worldwide this year, ranking first in market share.
Feeder container ships are small and medium-sized vessels under 3,000 TEU that operate between hub ports and smaller ports. The feeder container market has been dominated by Chinese shipbuilders, who have leveraged their stable domestic market and price competitiveness.
An official from HD Korea Shipbuilding & Offshore Engineering stated, “We plan to expand our competitiveness in the container ship market with our overwhelming technology, quality, and delivery reliability,” adding, “We will strengthen profitability through selective orders focusing on high-value-added eco-friendly ships.”
Source: Businesskorea
