Korea Overtakes China in Amount of Ship Deliveries in 5 Years
Time：2014-11-18
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According to industry sources and Clarksons Research on Nov. 16, Korea recorded 10.027 compensated gross tonnage (CGT) as of October, beating China with 9.784 CGT. It is the first time for the nation to outdo China in the amount of ship delivery after 2009.
From the mid-2000s, China saw the number of shipyards and orders for shipbuilding sharply increase. As a result, it upstaged Korea in the amount of ship deliveries until last year.
However, with Korea asserting dominance over China this year, the achievement will serve as an opportunity to confirm the competitiveness of Korea’s shipbuilding industry.
The nation’s competitiveness in eco-ship technology is considered to be the top contributor. Due to intense competition for mileage around the world, the demand for eco-friendly ships is increasing. Moreover, local shipyards have a competitive advantage in shipbuilding.
An official at a large local shipyard remarked, “The eco-ship craze started in between 2009 and 2010,” adding, “It may not be an overstatement to say that since then, local shipyards have monopolized the related market.”
The official also said, “It will not be easy for Chinese firms to overtake Korean counterparts in eco-friendly methods for the types of ships or energy saving devices for the time being.”
As a result, Chinese shipyards have difficulty delivering eco-friendly vessels, after obtaining shipbuilding contracts.
In fact, most dockyards in China outsource ship design work to state-run design centers. But there is a big difference in the size of centers or technical skills.
According to Lloyd’s Register, only 2,000 people are working in 7 major design centers in China. The number is less than a quarter of around 8,000 employees for three local shipbuilders.