The global shipbuilding industry is rapidly expanding, and according to new reports, registered orders have exceeded the previous record set in 2008. As of early September, statistics show that the total volume of global orders has reached 203.2 million compensated gross tons (cgt), marking a 13% increase from last year and nearing the historical record of 210.4 million tons cgt in May.
China's Dominance in the Shipbuilding Market
In the past 12 months, China has accounted for 74% of new cgt orders, raising its share of total global orders to 64%. In comparison, South Korea holds 19% and Japan only 6% of the market. Container ships make up 30% of the order volume, with 68% of last year's growth attributed to this type of vessel.
Reports indicate that Chinese shipbuilding facilities currently have 4.2 years of orders on hand at peak annual production, while this figure is 1.9 years for South Korea and 1.7 years for Japan.
New Builders Entering the Tanker Market
Due to existing constraints in shipbuilding facilities, new builders have entered the tanker market. According to received reports, 51 ships have been ordered from newly established facilities this year, representing a 34% increase compared to 2025. Of the 16 identified facilities, 11 are from China. A notable establishment in this area is Henley Shipbuilding, which delivered its first ship in 2024 and currently has 495 ships valued at $46 billion on order.
Analysts believe that owners' willingness to order from facilities without a track record in tanker construction is due to capacity constraints at established tanker manufacturing facilities.
Despite this trend, tanker shipbuilding prices remain surprisingly affordable compared to their historical peaks. Broker Affinity noted in a recent research report that VLCC construction prices are still 20 to 25% lower than the 2008 peaks in nominal terms. Considering inflation, a VLCC valued at $160 million in 2008 would cost nearly $250 million today, almost double current prices.
Broker Affinity also stated that the massive capacity injection from Henley has kept prices in check, although the loss of early delivery slots and shortages of engines and pumps may soon lead to price increases.
Read more: Houthi Advances and Their Impact on China-Saudi Oil Relations
