Korean shipyards poised to gain as US targets Chinese ships

In Korea, Today Newspaper reports the US Trade Representative has proposed port fees of $1 million per Chinese-operated ship and $1.5 million for other owners using Chinese-built vessels, a move that could push global ship orders toward South Korea, industry analysts said on March 5.

China dominates global shipbuilding, securing 70% of orders in 2023, while South Korea held 17%, according to Clarksons Research. Chinese yards typically offer ships about 20% cheaper than their Korean counterparts, but the proposed US fees could weaken that price advantage. Some shipowners are already shifting orders, with Germany’s Hapag-Lloyd switching contracts from China to Korea.

“Since ships are expensive long-term assets, even a little uncertainty can have a great impact on the shipowner’s purchase decision,” said Han Young-soo, a researcher at Samsung Securities.

Meanwhile, South Korea is pursuing US shipbuilding contracts. A Korea Trade-Investment Promotion Agency report ‘Opportunity for Korean Companies to Enter Through U.S. Marine Shipbuilding Market and Policy Trends’ published March 2 states the US Navy plans to invest $30 billion annually to expand its fleet to 381 ships by 2054, creating potential for 364 new ship orders. Korean officials are working to secure long-term contracts through strategic cooperation.

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