China Overtakes Korea LNG Carrier Orders, Challenging Korea’s Market Lead
South Korea’s long-standing lead in the global market for large liquefied natural gas (LNG) carriers is facing growing competition. China secured more LNG carrier orders than Korea in October, challenging its position in the high-value shipbuilding segment. According to Clarkson Research, a British shipbuilding and shipping market research firm, China secured five of the seven ...
South Korea's dominance in the global market for large liquefied natural gas (LNG) carriers is facing a new challenge. China has secured more orders for these high-value vessels in October compared to South Korea, according to Clarkson Research. In October, China took five out of the seven large LNG carriers ordered globally, while South Korea secured the remaining two.
Global orders from January through October totaled 76 vessels, a significant increase from 17 orders during the same period the previous year. South Korea retains the lead with 44 vessels, or 57.9% of the total, while China secured 32 vessels, accounting for 42.1%. China's expansion in this market has been led by Hudong-Zhonghua Shipbuilding and Jiangnan Shipyard, with Hudong-Zhonghua signing a contract for five 174,000-cubic-meter LNG carriers in October.
Jiangnan has also secured orders from Singapore-based Eastern Pacific Shipping and ADNOC Logistics & Services. China's growing influence in the LNG carrier market is driven by the country's status as the world's largest LNG importer, which has encouraged exporters and project operators to place orders with Chinese shipyards. This competitive edge is even more prominent in the broader shipbuilding market, where global vessel orders through October reached 79.69 million compensated gross tons, a 61% increase from the same period last year.
China secured 61.03 million CGT, or 76.6% of the total, while South Korea received 11.91 million CGT, or 14.9%. The U.S. suspension of port fees on China-related vessels has further eased potential cost burdens on Chinese shipbuilders, allowing them more room to secure orders. Despite Korea's share of the overall vessel market declining, the volume of work secured by Korean shipbuilders has continued to grow.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.