News in English

Japan is considering bold measures to revive its once-dominant shipbuilding industry

Japan is considering bold measures to revive its once-dominant shipbuilding industry, including the creation of a government-supported national shipyard, as part of a broader plan to rebuild its maritime manufacturing capabilities vital to national security.

A proposal submitted Friday to Prime Minister Shigeru Ishiba by the ruling Liberal Democratic Party (LDP) recommends restoring dormant shipbuilding and repair facilities and offering incentives to attract both public and private investment in advanced shipyard infrastructure.

In recent years, Japan’s shipbuilding market share has declined sharply, driven largely by intense price competition from Chinese and South Korean shipyards. To understand the major transformation in the global shipbuilding industry—marked by China's rise and the decline of Japan and South Korea—we can compare vessel deliveries from 2008 and 2024 (focusing on ships ≥10,000 DWT).

In 2008, a total of 480 bulk carriers and general cargo vessels were built worldwide. Japan led with a 47% share, followed by China at 42%. South Korea, meanwhile, dominated the tanker sector, constructing 46% of all tankers, while China and Japan each held around 20% market share. For container ships, China built 38% of the 468 vessels delivered that year, with South Korea and Japan contributing 31% and 9%, respectively. South Korea also led the gas carrier segment, building 62% of vessels, compared to Japan’s 25% and China’s 7%.

By 2024, China's dominance across all major ship types has become apparent. In the bulk carrier and general cargo segment, China now accounts for 62% of ships built, while Japan's share has dropped to 31%. A reversal has occurred in the tanker market, with China now leading at 46%, South Korea falling to 21%, and Japan at 18%. In container shipbuilding, China's market share has surged to 65%, while South Korea and Japan have declined to 27% and 8%, respectively. Although South Korea remains the leader in the gas carrier sector with 63%, China has made significant strides, increasing its share to 26%, up from just 7% in 2008.

Currently, there are approximately 6,355 bulk carrier vessels built in Japanese shipyards, with 1,861 of them (29%) being 21 years old or older. By 2030, the number of Japanese-built bulk carrier vessels is projected to reach 7,342, of which 3,049 (41.5%) will be 21 years old or older. In the tanker sector, there are currently 2,071 vessels built in Japanese shipyards, with 649 of them (31%) being 21 years old or older. By 2030, the number of Japanese-built tankers is expected to rise to 2,192, with 1,156 vessels (53%) aged 21 years or older.

Despite the steep decline in global competitiveness, Japan’s shipbuilding sector is undergoing a leadership reset. Yukito Higaki, president of Imabari Shipbuilding—Japan’s largest commercial yard—has been appointed chairman of the Japan Shipbuilding Industry Association (JSIA). This marks the first time the role is held by someone from a purely commercial yard rather than a diversified industrial conglomerate like Mitsubishi or IHI. At a recent press conference, Higaki outlined an ambitious target: to double Japan’s global market share and restore the country to at least 20% of the global shipbuilding market by 2030.

Sale and Purchase

Dry:

In the Capesize segment, two Japanese-built units changed hands. “Mineral Hiroshige” – 208,572 / 2019 Imabari was sold to Chinese interests for USD 64 mills, while “Bulk Ginza” – 182,868 / 2020 Imabari changed hands for USD 64 mills. The Panamax sector saw an en bloc deal of the two 81K sisters built at Jiangsu New Hantong: “Explorer Asia”- 81K/2016 Jiangsu New Hantong and “Explorer Oceania” – 81K/2015 were sold for USD 40.5 – 41 mills each to Chinese buyers. Meanwhile, Greek interests acquired “Santa Graciela” – 81,149 / 2013 Tsuneishi for high USD 18 mills. In Supramax sector, “FLC Celebration” – 57,000 / 2011 Qingshan achieved USD 11.2 mills. Greek buyers acquired the “Birte Selmer” – 34,976 / 2011 Samjin for USD 9.9 mills, while “Huayang Sunrise” – 34,003 / 2011 Fujian was sold at auction for USD 7.46 mills. Finally, in the Handysize sector, the “CS crystal” – 30,478 / 2010 Tsuji Heavy was sold for USD 10 mills to Korean buyers.

Wet:

This week saw three VLCC transactions. “Papalemos” – 319K/2018 HHI was sold to DHT for USD 108 mills basis delivery September–November 2025. “C. Spirit” – 313K/2013 HHI went to Yasa Shipping for USD 67 mills. An undisclosed buyer also acquired the 299K/2006 “Alter Ego” - 299K/2006 Nantong Cosco was sold for USD 42 mills. On the Suezmax front, “Nordic Thunder” – 157K/2017 Hyundai Samho was sold for USD 66 mills to Delta Tankers. In the Aframax/LR2 segment, Vietnamese interests acquired the “Yasa Golden Marmara” – 110K/2008 Mitsui for USD 31 mills, while Greek buyers acquired the LR2 “Limerick Spirit” – 105K/2007 HHI for USD 27.8 mills. The LR1 sector saw the twin STX sisters “Yamilah-III” and “Bani Yas” (each 74K/2011 & 74K/2010) sold en bloc for USD 22 mills each. In the MR2 market, the “Nord Oceania” – 49K/2018 Onomichi fetched USD 37 mills. Finally, on the Handysize side, “Adeline” – 13K/1999 Lindenau was sold for USD 5.5 mills.

Xclusiv Shipbrokers Inc.