EconoScope | Global demand, economic recovery drive China ship exports to surge 91%

(ECNS) -- In the first half of 2024, China's ship exports saw a staggering increase of 91.1 percent, far exceeding the 22.2 percent export growth of automobiles.

Data from the China Association of the National Shipbuilding Industry shows that in 2023, out of the world's 18 main ship types, China ranked first globally in new orders for 14. Specifically, new orders for bulk carriers, tankers, container ships, and car carriers accounted for 79.6 percent, 72.1 percent, 47.8 percent, and 82.7 percent of the global total, respectively.

Some shipbuilding companies disclosed that they currently have a full order book, with schedules already set until the end of 2027, and some even extending into 2028.

In 2024, the three key indicators of the shipbuilding industry — completion volume, new orders, and backlog orders — continue to improve.

In the first quarter, calculated by deadweight tonnage, the three indicators accounted for 53.8 percent, 69.6 percent, and 56.7 percent of the global total, respectively.

For the first time in 2023, China established a full range of ship and marine product assembly and construction capabilities, which means it can build all types of vessels. 

In 2024, Chinese companies won the world's largest single shipbuilding order, to build 18 of the world's largest 271,000 cubic meter LNG carriers. In April this year, the second domestically produced large cruise ship was successfully launched, marking the beginning of an era of mass production of Chinese cruise vessels.

Luo Zhiheng, chief economist at Yuekai Securities, said the outstanding performance of ship exports is mainly due to a strong rebound in global maritime transport, with a significant increase in demand for new ships, especially green and environmentally friendly vessels.

He noted that the world is about to enter a peak period for ship replacement while the acceleration of green and low-carbon transformation requires faster ship renewal. Apart from that, the Red Sea crisis has led to an increase in the demand for rerouting, consuming idle transportation capacity and increasing the demand for new ships.

Wen Bin, chief economist at China Minsheng Bank, noted that as the global economy gradually recovers, global demand for new ships is steadily increasing. China is the world's largest exporter of bulk carriers, tankers, and car carriers, with the growth rate of backlog ship orders setting new records, so against the backdrop of the recovery of the shipping market, ship exports stand out.