China's shipbuilding sector sees steady Q1 growth

China's shipbuilding sector continues to lead in the global market, with steady growth in output, new orders and orders on hand in the first quarter of 2024, showcasing the vibrant vitality of China's economy and its manufacturing sector.

Shipbuilding completions totaled 12.35 million deadweight tons (dwt), up 34.7 percent year-on-year, and the volume of new orders was 24.14 million dwt, an increase of 59 percent, reads a report released on Monday by the China Association of the National Shipbuilding Industry.

As of end-March, orders on hand stood at 154.04 million dwt, up 34.5 percent year-on-year, according to the report.

China's shipbuilding industry held a significant share of the global total in the same period, with output accounting for 53.8 percent of the global total, new orders for 69.6 percent and orders on hand for 56.7 percent, reads the report.

In April, China ranked first globally in ship orders, with 3.58 million compensated gross tons, accounting for 76 percent of the global total, data from Clarkson Research, a provider of shipping and trade data, showed on May 7.

China has firmly maintained the leading position in the global shipbuilding sector, as it kept focusing on integrating advanced technology into shipbuilding and achieving alignment with international top-tier standards, Wu Minghua, a veteran shipping analyst, told the Global Times on Monday.

"China's competitiveness in production, maintenance, services and demand of the shipbuilding sector was very high," South Korean media outlet The Hankyoreh said on May 14. As a major shipbuilding country, with advantages in research and development, South Korea hoped to collaborate with friendly countries in the commercial and specialized ship sectors, said the report.

Despite the US announcing some negative measures against China's shipbuilding sector, including an investigation in April citing unfair economic activities, and Section 301 investigations, Chinese companies have maintained a stable global position and market in shipbuilding.

The Clarkson research showed that China has been the leading country in annual new orders for the past three years. In 2021 and 2022, China's international market share was nearly 50 percent, and it reached 58.9 percent in 2023.

China's shipbuilding sector still requires more robust policies to support technological innovation and talent acquisition, as the rapid development of the industry has highlighted the critical need for technology and skilled researchers, Wu said.

"Research-related policy support can also emphasize the intelligent area and low-carbon aspects of shipbuilding, to better catch up with international top standards," Wu noted, as these two areas are currently the most crucial for China and the international shipbuilding sectors.