Dire straits provide China's shipbuilders great opportunities

Push for cleaner waters

Tightening international regulations, rising fuel costs and growing pressure from cargo owners to decarbonize supply chains are also driving industry change.

Stricter emissions rules from the International Maritime Organization and regional authorities are accelerating demand for vessels powered by cleaner fuels such as LNG, methanol and ammonia, said Zeng Ji, a professor of shipbuilding at Shanghai Maritime University.

According to the IMO, 92.6 percent of the world's operating fleet still relies on traditional fuels such as marine diesel, gasoline and heavy fuel oil.

In 2023, the London-headquartered organization set a target of net-zero emissions by or around 2050. As its interim goals, 20 to 30 percent of emissions from international shipping are targeted for reduction by 2030, and up to 80 percent to be cut by 2040, compared with 2008 levels.

Qian Hanglu, an analyst at Ningbo Shipping Exchange in Zhejiang province, said at the same time, higher freight volatility is pushing shipowners to prioritize efficiency and life-cycle cost savings.

"As a result, shipbuilders with advanced engineering capabilities and integrated supply chains are better positioned to capture value in these higher-margin segments," she added.

This approach is also in line with broader national priorities under the 15th Five-Year Plan (2026-30), which emphasizes green and low-carbon growth, industrial upgrading and the development of stronger, more competitive high-end shipbuilding and marine engineering equipment clusters.

China will continue to advance the research, design and manufacturing of large cruise ships and LNG carriers this year, while consolidating the strengths of its marine equipment manufacturing industry, the Ministry of Industry and Information Technology said.

As efficiency and faster delivery increasingly determine order flows, Chinese shipyards have boosted margins by localizing material production, while reinforcing their industrial supply chains — a strategy that delivers benefits for both shipbuilders and their global clients, said Zhang Hongpeng, a professor at Dalian Maritime University in Liaoning.

The value of China's ship exports reached $55.08 billion in 2025, up 26.7 percent year-on-year, data from the China Association of the National Shipbuilding Industry showed.

The shipbuilding industry is characterized by its complexity, extensive supply chain and strong industrial linkages, encompassing more than 50 industries, including steel, nonferrous metals, machinery, electronics and coatings, said the Beijing-based association.

Zhang said that artificial intelligence and digital systems are increasingly being integrated into ship design, manufacturing and operations, improving efficiency and supporting the shift toward greener, smarter production.

Beyond vessel deliveries, industry cooperation is also expanding across global markets.

Roger Holm, executive vice-president at Wartsila Corp, a Finnish ship engine manufacturer operating four plants in China, noted that both Finland and China possess strong capabilities in clean technologies, digitalization and smart manufacturing.

"We look forward to enhanced cooperation that will accelerate green transition, foster deeper innovation and strengthen local partnerships," he said.

zhongnan@chinadaily.com.cn