Shipbuilding Orders Rebound as South Korea Looks to Benefits from U.S. Fees

South Korea’s shipbuilding industry is highlighting a rebound in orders in March after a slow start to the year. It comes as the industry looks for ways to benefit from the proposed U.S. fees on Chinese-built ships.

To combat the growing Chinese domination of shipbuilding, South Korea’s strategy has included a focus on high-value ships and larger, more technologically advanced ships. This includes all forms of gas carriers where South Korea continues to lead the orders despite China’s growth in LNG tankers. In the long term, South Korea looks toward ammonia carriers, ammonia-fueled ships, automation, and other technologies.

Reports are the strategy worked in March 2025 with the South Korean yards garnering 55 percent of the orders based on tonnage according to data from Clarkson Research Service. South Korea recorded orders for 820,000 compensated gross tons (CGT) compared to the Chinese yards booking 520,000 CGT in March. By the number of vessels, however, China continued its lead booking 31 ship orders compared to South Korea’s 17 ships.

This is a strong rebound from February when China booked 70 percent of the orders by tonnage. South Korea’s yards booked just nine percent of the tonnage ordered in February. The reports highlighted that the Korean yards historically have lagged behind the Chinese in the first quarter of the year while also noting that last year South Korea only received 16 percent of the orders for the year versus 70 percent booked in China.

China also continues to hold a strong overall lead in the sector, Clarkson’s data shows Chinese yards have an order backlog of nearly 94 million CGT which is 59 percent of the global total. South Korea’s yards while ranking second have a backlog of just over 36 million CGT or 23 percent of the total.

The South Korean industry is looking toward the U.S. to help drive future business. In February it was reported that the U.S. Trade Representative was proposing fees for Chinese-built ships calling in U.S. ports. The Trump administration has latched on to the concept as part of its plan to rebuild U.S. shipbuilding.

The Korean news outlet CHOSUNBIZ reports fears of the pending fees might already be impacting future shipbuilding plans. Citing reports from Daishin Securities it writes that ExxonMobil canceled orders for two liquefied natural gas bunkering vessels (LNGBVs) intended for China.

HD Korea Shipbuilding & Offshore Engineering, South Korea’s largest shipbuilder, reported yesterday, April 3, that it had booked an additional order for an LNG carrier valued at approximately $263 million. The group said it has now received orders for a total of 24 ships worth $4.07 billion, achieving 22.6 percent of its annual order target of $18.05 billion. By ship type, the company has received orders in 2025 for an LNG carrier, four LNG bunkering vessels, an LPG/ammonia carrier, and two ethane carriers, as well as 12 containerships, and four tankers.

The Office of the United States Trade Representative held public hearings on March 24 and March 26, regarding the proposed actions in the Section 301 investigation on China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance. It also accepted written comments and for seven days afterward was also accepting rebuttal comments. No timeline was released for completing the review but it is expected the office will issue its final recommendations which Trump will incorporate into the overall plan for U.S. shipbuilding. Combined with the new tariffs, many have warned it could have a chilling effect on global trade and the shipping industry.