VSL Shipping News: Japan $2.3 Bn Plan to Double Ship Output

Beijing, Oct 23 (Reuters) – China’s Ministry of Commerce confirmed that, by mutual agreement, Vice-Premier He Lifeng will head a Chinese delegation to Malaysia from 24-27 October for a new round of economic and trade consultations with U.S. Treasury Secretary Bessent and Trade Representative Greer. The discussions will follow the important consensus reached in this year’s phone calls between the two heads of state and focus on key bilateral trade issues in search of constructive solutions.

Japan Unveils “Double Output in a Decade” Shipbuilding Plan: $2.3-bln Drive to Reclaim Market Share from China, South Korea

Tokyo, Oct 23 – The Shipbuilders’ Association of Japan (SAJ) and 17 leading yards, including Imabari Shipbuilding, announced a 350-billion-yen (≈ $2.3 billion) modernization programme aimed at doubling the nation’s commercial-ship output by 2033. The project is expected to be folded into Tokyo’s planned 1-trillion-yen ($6.6 billion) National Maritime Industry Revitalization Fund, positioning Japan to capitalise on U.S. efforts to find alternatives to Chinese shipbuilding capacity.

Use of funds: digital retrofit of ageing yards, expansion of automated production lines, R&D on green and LNG-dual-fuel vessels.

 Financing: first-phase 350 billion yen via bank loans and self-raising; remainder contingent on government subsidies and policy-based finance.

 If approved, it would be Japan’s largest joint shipbuilding investment since the 1980s and a core plank of the country’s push to bolster economic security and energy resilience.

Industry data show Japan once commanded almost half the global orderbook, but its share has fallen below 10% amid fierce price competition and faster delivery times from Chinese and South Korean rivals. Ageing workforces, scarce coastal land and slow policy reform compound the challenge. “Only by accelerating digitalization and facility upgrades can we avoid being left further behind,” warned SAJ chairman and Imabari president Yukito Higaki.

Maximize Market Research forecasts the world shipbuilding market will rise from $162.1 billion in 2024 to $228.8 billion in 2032, a 4.4% CAGR, propelled by tougher IMO emission rules and a wave of fleet replacement.

Demand side: surging orders for LNG-powered, dual-fuel, hydrogen/ammonia and hybrid propulsion; port entry, financing and insurance terms now tied to carbon intensity.

 Supply side: rapid uptake of digital-twin design, AI-driven process optimisation, assembly robots and IoT remote monitoring, cutting build times 10-20% and lifetime costs 8-12%.

 Niche segments: offshore wind-turbine-installation vessels, polar transports and ships pre-equipped for carbon-capture poised to become new blue oceans.

Brazilian oilseed crushers association ABIOVE, in its first projection for 2025/26, expects the country’s soybean output to hit a record 178.5 million tonnes, up 3.9% from the revised 171.8 million tonnes in 2024/25.