Shipbuilding Resurgence: China at the Helm

The global shipbuilding industry is experiencing a remarkable revival, with China at the epicenter of this resurgence. The sector is witnessing a renaissance not seen since the heady days of the late 2000s.

Newbuilding capacity across shipbuilding giants China, South Korea, and Japan has surged by an impressive 20% year-on-year to reach 35.6 million CGT per annum. While this represents significant growth, it’s essential to note that the industry is still operating below peak levels achieved in the late 2000s.

China has undeniably emerged as the dominant force in shipbuilding, capturing approximately 66% of global newbuilding orders in the first half of 2024. The nation’s shipbuilding output has skyrocketed this year, with delivery figures surpassing previous years by a considerable margin.

Industry experts attribute this surge to several factors. The decline in China’s construction sector has reportedly released a substantial workforce into the shipbuilding industry, bolstering its labor pool. Moreover, the sector’s recent restructuring and consolidation efforts have yielded positive results in terms of operational efficiency.

As the shipbuilding industry navigates this period of rapid expansion, it’s crucial to monitor market dynamics closely to ensure sustainable growth. While the current momentum is undeniably positive, maintaining a balanced approach will be essential to prevent potential overcapacity issues in the future.

Source: Splash247

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Faiz is a dynamic entrepreneur and seasoned logistics expert with a passion for reshaping the industry. As a Chartered Fellow, he holds leadership positions in esteemed organizations such as the Federation of Malaysian Freight Forwarders and Persatuan Pengusaha Logistik Bumiputera. His academic pursuits include a Bachelor's degree from UiTM and an Executive Post-Grad Diploma from the University of Cambridge.

Founder of Sufi Group and co-founder of Global Freight Network, Faiz boasts a diverse portfolio encompassing logistics,supply chain, business advisory, container trading, and lifestyle yacht services. Beyond his professional endeavors, he is a dedicated family man, a sports enthusiast, and a keen observer of culture and the arts. His infectious enthusiasm and strategic acumen make him a valuable asset to the industry and a respected figure in the business community.