Shipbuilding’s supercycle faces a reality check

Shipbuilding Industry Faces Capacity and Demand Challenges

Hanwha Ocean, a major Korean shipyard, recently revealed that its yard operated at 101.1% capacity utilization in the third quarter of 2025. This figure highlights the intense pressure and demand placed on shipyards during what had been seen as a booming supercycle in shipbuilding.

Despite this high utilization rate, the industry is starting to confront a more cautious reality. The rapid growth phase is now tempered by slower order intake and concerns about future demand. Market observers warn that the shipbuilding supercycle may be nearing a turning point, facing challenges linked to fluctuating commodity prices, changes in global trade patterns, and emerging environmental regulations.

Industry Insight

"The utilization rate surpassing 100% reveals the strain on shipyards, but it also signals that the supercycle could be tapering off as market fundamentals shift," noted an industry analyst.

Shipbuilders are adapting by diversifying their order books and exploring new vessel types to maintain competitive advantage. Still, they remain wary of overcapacity and a potential drop in new contracts.

Author’s summary: Despite current demand pushing shipyard capacity beyond 100%, shipbuilding’s supercycle is encountering a reality check as market conditions shift and future orders slow down.

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Splash247 Splash247 — 2025-11-26

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