(Yicai Global) Dec. 11 -- Chinese shipbuilders last month overtook South Korean rivals to become the top country for new orders this year, per data from UK-based intelligence provider Clarkson Research Services.
China took the lead after accepting orders amassing 7.13 million in compensated gross tonnage, an indicator based on the type, size and tonnage of a vessel, South Korean news outlet Aju Business Daily reported on Dec. 8, quoting Clarkson's data. The former leader came in second at 5.74 million and Japan was third with 1.82 million. China has upped its global market share this year to 36.3 percent.
The year isn't over yet, but it is unlikely South Korea will retain their title at the end of 2017 after championing the industry since 2011, the report said.
Shipbuilding is a pillar industry in South Korea, which is home to the three largest companies worldwide in the industry: Hyundai Heavy Industries Co. [KRX:009540], Daewoo Shipbuilding & Marine Engineering [KRX:042660; FRA:DSW] and Samsung Heavy Industries Co. [KRX:010140].
French shipping giant CMA CGM SA placed orders with two Chinese shipbuilders for nine very large container ships, each worth USD160 million, in August this year. South Korean competitors battled out to win the contract, which is the largest ever for container ships, but eventually lost out to their Chinese counterparts.