The global shipping and shipbuilding market is rapidly restructuring due to the impacts of the Middle East conflict. Disruptions in energy supply chains have increased demand for energy carriers, presenting new opportunities for the shipbuilding industry.
Executives from Korea's three major shipbuilders participating in the Posidonia 2026 on June 4 identified energy transport, eco-friendliness, and digital technology as key factors determining future competitiveness.
While past competitiveness in shipbuilding was based on construction capabilities and order volumes, the new benchmarks are expected to be energy security, eco-friendly ship technology, and AI-driven digital innovation capabilities.
◇ Turning Crisis into Opportunity: Energy Security Creates New Demand
Jeong Ihyo, Executive at HD Hyundai Heavy Industries, stated, "The ongoing geopolitical risks, such as the situation in the Middle East, have significantly reduced predictability in the shipbuilding and shipping markets. I anticipate that the second half of the year will see robust trends based on energy security and eco-friendly transitions."Yoon Jae-kyun, Vice President and Head of Sales at Samsung Heavy Industries, noted, "The war in the Middle East has led to a surge in global energy prices, increasing volatility in the shipbuilding sector, including rising prices for second-hand vessels and charter rates."
However, they emphasized that this market uncertainty represents an opportunity rather than a crisis. Jeong remarked, "Uncertainty does not necessarily lead to a decline in demand. Ultimately, what matters is our agility in responding to changes."
Kang Sang-don, Executive at Hanwha Ocean, also highlighted that recent geopolitical risks are driving new demand. He explained, "The prolonged war has led to increased orders for energy and tanker vessels, such as Very Large Crude Carriers (VLCCs) and Very Large Gas Carriers (VLGCs). We expect orders to ramp up, particularly around U.S. liquefied natural gas (LNG) export projects."
Yoon added, "The conflict in the Middle East is prompting countries worldwide to diversify their energy supply sources. The decrease in LNG production in the region could lead to longer transportation distances and increased project investments and long-term supply contracts."
◇ Shared Vision for the Future, Yet Diverse Survival Strategies
While the executives shared a common outlook on the future of the shipbuilding industry, their proposed solutions varied. HD Hyundai emphasized AI and digital technology, Samsung Heavy Industries focused on eco-friendly initiatives, and Hanwha Ocean highlighted LNG value chain competitiveness.Jeong noted, "At this Posidonia, global shipowners have shown significant interest not only in traditional physical Energy Saving Devices (ESDs) but also in AI-based digital ESDs. The combination of eco-friendly technology and digital solutions is enhancing market trust in vessel performance."
Indeed, HD Hyundai has garnered considerable interest and trust from global shipowners through its autonomous navigation solution, HiNAS Control. This solution has secured over 350 orders, including a contract for 40 vessels with domestic shipowner HMM, proving its commercial viability.
HD Hyundai achieved the most significant collaborative outcomes at this Posidonia, signing over ten global agreements, the highest among Korea's three major shipbuilders.
Yoon stated, "Samsung Heavy Industries is solidifying its competitiveness in the global market as a leader in the LNG value chain, from floating liquefied natural gas facilities (FLNG) to LNG ship terminals (FSRU) and LNG carriers. Recently, we are also nurturing a floating data center business as a future growth area due to rising AI demand."
Hanwha Ocean emphasized its LNG competitiveness. Kang remarked, "We have a portfolio that can secure profitability across various vessel types, focusing on LNG carriers and VLCCs. We will collaborate with group affiliates, including Hanwha Shipping, to expand the value chain from LNG trading to transportation, securing a competitive edge."
◇ China's Pursuit Remains Intense: Focus on Technology, Not Price
The executives identified China as the most significant variable in the market. However, they agreed that by prioritizing technology and trust over price competition, they could maintain their competitive edge.Jeong acknowledged, "It is true that China poses a threat. However, we will maintain our competitiveness in high-value markets based on our technological capabilities, software strengths, and delivery reliability."
Yoon also emphasized, "Ultimately, technological competitiveness is key. As new energy sources like ammonia, hydrogen, and small modular reactors (SMRs) emerge, it is crucial to proactively secure related technologies."
Kang added, "While it is true that Chinese shipyards are expanding their market share, this reflects a difference in order strategies focused on price. Korean shipyards maintain competitiveness in high-value markets based on quality, delivery, and profitability."
[This article was produced with support from the (Re)Sea of the Future and the Korean Maritime Journalists Association.]
* This article has been translated by AI.
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