Greek shipowners’ choice of Chinese shipyards now rests on far more than construction costs. Extensive production capacity, the ability to build a broad range of vessel types and the confidence developed through successive projects have changed how Greek shipping views China’s shipbuilding industry.
This is more than a shift in shipyard preferences. Price initially attracted Greek owners to Chinese yards. Today, the appeal increasingly reflects how owners make their decisions: when they need a vessel, what they need it to be and which shipyards they trust to build it.
Simon Ward, Director at URSA Shipbrokers, describes this shift in a conversation with Ling Cai, a journalist and China–Greece business communication consultant. Her article, “From Price to Preference: Why Greek Shipowners Choose China,” published on 6 October, traces a relationship that, roughly two decades ago, was accompanied by concerns about quality and delivery deadlines.
From price to confidence
Ward, who has more than 30 years of shipbroking experience and nearly three decades in the Greek market, places the beginning of the process around 2001. Attractive prices drew Greek orders to China, though not every owner approached the opportunity in the same way. Some accepted greater risk if the financial advantage was large enough.
Chinese yards used competitive pricing to gain experience, develop technical capabilities and expand their market share. The legacy can still be seen in the secondhand market, where, according to Ward, some Chinese-built vessels from approximately 2005–2015 may sell for less than Japanese- or Korean-built ships of similar age, depending on quality and performance.
The more pronounced change in perceptions, in his assessment, came in 2017–2018. Restructuring in China’s shipbuilding industry, together with improvements in management, specialization, technology and delivery performance, strengthened confidence among larger shipping groups.
Price opened the door; performance is what changed minds.
Why building slots matter
Today, the first factor Ward identifies is availability. Japan retains strong design and technological capabilities, but its production capacity has declined, and its yards can be selective about customers. South Korea has increasingly focused on higher-value, technically complex vessels.
China offers extensive capacity across a wide range of ship types. This matters particularly to Greek companies with substantial exposure to dry bulk shipping that need available building slots to renew or expand their fleets.
This may be the most consequential element of Ward’s assessment. An available building slot is not merely a scheduling convenience. It can determine whether a shipowner is able to proceed with a fleet investment within the intended timeframe.
Cost remains an advantage. Ward considers Chinese-built ships still cheaper than comparable Japanese and Korean vessels. He also points to Chinese yards’ greater willingness to discuss technical modifications at an owner’s request, whereas Japanese yards tend to favour established, standardized designs.
That flexibility can be particularly valuable to owners seeking vessels tailored to their fleet requirements and commercial priorities, although standardization has merits of its own.
Different strengths, wider ties
Ward emphasizes the value of Japanese design and notes that some well-regarded Chinese yards have benefited from joint ventures with Japanese companies, drawing on their design, technology and management experience.
China’s expanding position does not erase the competitive strengths of Japanese and South Korean shipbuilders. Rather, it highlights the different capabilities that shipowners must weigh when choosing where to place their orders.
Ward also cautions against assuming that today’s competitive landscape is permanent. He recalls a time when Japanese-built ships were regarded as inferior to British-built vessels, when Britain was still the world’s largest shipbuilding nation.
The relationship between Greece and China also extends beyond newbuilding contracts. Greek shipowners provide transport capacity worldwide, operate vessels and take risks based on their reading of shipping market cycles. China combines industrial production and substantial cargo flows with shipyards, financing and insurance services.
Personal business relationships add another dimension. Ward notes that both sides attach considerable importance to them. Experience gained through an earlier contract and cooperation with a particular shipyard can influence the next order, alongside price, delivery timing and technical requirements.
Beyond the price advantage
The significance of China’s rise, then, is not simply that Greek shipowners have found a cheaper place to build vessels.
Chinese yards increasingly offer the capacity, flexibility and accumulated experience that influence newbuilding decisions. Crucially, the availability of building slots also affects when owners can realistically renew or expand their fleets.
Price established the relationship. What has developed since is a broader basis for choosing where to build.
George S. Skordilis is Editor-in-Chief of geo-trends.eu.