Korean & Chinese Shipbuilders Battle For Container Ship Order Worth 4 Trillion Won

Chinese and Korean shipbuilders are competing for a 4 trillion won order comprising 12 container ships for France.

As orders for LNG carriers are declining in 2025, container vessels are filling the backlogs of shipyards, which has increased the competition between China and Korea.

The construction cost of container ships is more than that of LNG Carriers, and the market of the former is estimated to see rising competition.

Per reports, CMA CGM, the 3rd largest shipping company, is pursuing an order for 12 LNG dual-fuel container ships, each with a 21,000 to 24,000 TEU capacity.

The approximate price of each ship is $250 million, and the contract includes building six ships with an option for 6 extra.

The bidding process involves Korea’s HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean, along with Chinese Companies like China State Shipbuilding Corp, Hudong-Zhonghua Shipbuilding, and Jiangnan Shipyard.

China has an advantage in terms of price competitiveness as the Korean side maintains that a 21,000 TEU container ship would cost at least $250 million to build, though the Chinese side argues that $230 million is enough.

Some sources have said that Hudong-Zhonghua Shipbuilding proposed a price of just $207 million, and it represents major price disruption, given the present market price for container vessels, 20,000 TEU or more, is atleast $220 million.

Korean shipbuilders focused on their superior dual-fuel ship construction technology and high-on-time delivery rates compared to China.

They are also at an advantageous position from the U.S efforts to check China’s shipbuilding and shipping industry.

The U.S Trump Administration plans to impose the port entry fees on vessels built in Beijing or operated by Chinese companies beginning in October.

Source: Maritime Shipping News