Global shipbuilding orders experienced a sharp contraction in July, with South Korean shipbuilders securing 16 percent of the market while Chinese competitors captured an overwhelming 81 percent, according to data from Clarksons Research.
Total global ship orders for July dropped to 3.57 million compensated gross tons (CGT), encompassing 137 vessels, according to Clarksons Research. That volume represents a 56 percent decline from June’s total of 8.03 million CGT and a 22 percent decrease compared to July of the previous year, which stood at 4.55 million CGT.
South Korean yards booked 570,000 CGT across 21 vessels in July, accounting for 16 percent of the worldwide total. In contrast, Chinese shipbuilders contracted 2.9 million CGT across 111 vessels, translating to an 81 percent market share. On a monthly volume basis, Chinese yards outpaced their South Korean counterparts by more than five times.
Cumulative Performance and Global Orderbooks
Despite the monthly slowdown, cumulative figures through the first seven months of the year point to robust year-on-year expansion across the global shipbuilding industry. Total worldwide orders from January to July reached 5,093만CGT across 1,778 vessels, marking a 65 percent surge from the 3,095만CGT recorded during the same period in the prior year.
South Korea accumulated 870만CGT across 218 vessels during the seven-month stretch, capturing 17 percent of the global market. That total reflects a 61 percent increase in volume compared to the corresponding period a year earlier. Meanwhile, Chinese shipbuilders expanded their output even faster, booking 3,802만CGT across 1,394 vessels—a 107 percent year-on-year spike that secured 75 percent of total global orders.
Worldwide order backlogs continued to build, reaching 2억1천175만CGT by the end of July, an increase of 232만CGT from June. China’s order backlog stood at 1억4천22만CGT, representing 66 percent of the global total, while South Korea held 3,823만CGT, or 18 percent. On a monthly comparison, South Korea’s backlog decreased by 48만CGT, whereas China’s backlog expanded by 361만CGT.
Vessel Pricing and Market Valuations
The Clarksons Newbuilding Price Index climbed 0.34 points from June to reach 185.49 at the end of July. That index level sits 29 percent higher than the 143.95 recorded five years prior in July 2021.
Individual vessel benchmarks underscore the high capital cost of modern fleet additions. Liquefied natural gas (LNG) carriers commanded an average price of $248,500,000, while very large crude carriers (VLCCs) were priced at $130,500,000. Ultra-large container ships ranging from 22,000 to 24,000 TEU reached $259,500,000 per vessel, according to market data compiled by Clarksons Research.
Industry Outlook and Monitoring
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