In view of President Trump's declared intention to "Make America’s Shipbuilding Great Again," this week we aim to shed some light on the global shipbuilding market dynamics. An executive order for the revival of the US shipbuilding industry (commercial and military) has been drafted, aiming to substantially enhance its market position in the next years. The executive order includes measures such as the formation of a Maritime Security Trust Fund, a six-month plan to increase U.S. shipbuilding capacity and develop the workforce, trade restrictions on China, tax incentives, higher wages for shipyard workers, and investments in maritime infrastructure. Moreover, the French shipping conglomerate CMA CGM Group has committed to allocate $20 billion in investments in US shipping over the next four years, including upgrades to container port infrastructures on both coasts, placements of new orders in US shipyards and increase of its US flagged fleet. Additionally, CMA CGM plans to invest in the US air cargo logistics chain as well by establishing an air cargo hub in Chicago.
Considering these developments and the dynamics of Indian shipbuilding as presented in previous insight, the sector is likely to witness market shifts as countries holding currently small market shares intensify their efforts to expand and rebalance market dynamics.
Examining the current global orderbook, this includes 5,735 vessels totaling 281.18m GT, demonstrating a steady increase since 2021 and the post covid reopening of global economy. Presently, the orderbook has increased by 22% year-on-year, in terms of GT. Container ships make up 24% of orders, LNG carriers 19% (with high orderbook-to-fleet ratios of 27% and 48%, respectively), followed by bulk carriers and tankers, each accounting for 18%.
China, Japan, and South Korea dominate with combined orders of over 90% of the orderbook, with China alone commanding 62% of new orders. Italy stands out in Europe, with a notable 67% yearon-year increase in its 2025 orderbook, mainly due to cruise ship contracts with Fincantieri shipyards.
Vietnam, ranking fifth, has seen remarkable growth. In 2024, Vietnamese shipyards increased their output in terms of GT by 40% compared to 2023 and 61% since 2022. The current orderbook of 2.82 million GT represents a 29% year-on-year increase and a 148% rise since 2022. Vietnam’s shipbuilding industry relies on several advantages, including its strategic location, extensive coastline, cost-effective labor and a government supporting shipbuilding via favorable policies, investments in modernization and greening of infrastructures, and incentives for foreign investors. Additionally, the establishment of shipyards by prominent names such as Hyundai HI and Damen Shipyards, has contributed to the sector’s growth.
Focusing to the US shipbuilding, the orderbook is a small fraction of the total, counting 52 units of ca. 245,000 GT, primarily consisting of tugboats and passenger/cruise vessels. However, the U.S. has significant potential for expansion, bolstered by robust investment capabilities, international partnerships (such as with CMA CGM), military shipbuilding expertise, and cutting-edge technologies, combined with the government commitment to grow the national shipbuilding industry. The developments in the shipbuilding market are set to attract significant attention in the coming years. While China, South Korea, and Japan remain dominant forces, the USA, Vietnam, and India are positioning themselves as emerging players, poised to challenge the status quo and strengthen their market presence.
Data Source: Intermodal