Shipbuilding: Where Does Japan’s Shipyards Stand Ahead of 2026? in Hellenic Shipping News 05/01/2026 Much of last year’s focus has been around the attempted rebirth of US’ shipbuilding industry, amid links with S. Korea. It would be interesting to see where Japan’s shipyards stand. In a recent weekly report, shipbroker Intermodal attempted exactly that, noting that Japan’s shipbuilding industry is still among the world’s top three but grappling with competition from China and South Korea”. According to the shipbroker, “against this backdrop, recent developments suggest that the country is stepping up efforts to strengthen its shipbuilding competitiveness. SAJ (Shipbuilders Association of Japan), representing 17 leading shipbuilding groups, plans to invest approximately $2.3 billion to the domestic industry, while also inviting public sector’s contributions, to reach a total of $6.5 billion by 2035. This plan targets modernizing shipyards, including replacing outdated machinery, installing larger cranes, and introducing advanced automation and technologies. At the same time, the Japanese government has signed an MoU with the United States to expand collaboration, opening opportunities for US orders at domestic yards and contracts for maintenance of US Navy vessels”. The shipbroker’s Senior Analyst, Mr. Nikos Tagoulis, said that “these efforts come as Japan seeks to regain ground in a shipbuilding landscape that has shifted dramatically over the past two decades. Once a world leader commanding more than 35% of new orders, the country’s market share has steadily declined with the rise of Chinese shipbuilding falling from 26% in 2017 to record low of just over 10% as of October 2025. Today, the three Far Eastern nations collectively command nearly 96% of total orders by dwt, with China leading at 68%, South Korea at 18%, and Japan in third place. Japanese orderbook comprises 737 vessels totalling 40.7 million dwt, primarily bulk carriers, tankers, and containerships. Notably, there are no LNG carrier orders, reflecting gap relative to Far East competitors. Regarding alternative fuels, 10% of vessels may use methanol (mainly bulkers and containerships), and approximately 4% are LNG-capable (mostly PCCs and bulkers). Moreover, 32% of ordered tonnage will be scrubber-fitted”. Tagoulis noted that “amid this challenging environment, the sector has undergone consolidations and other strategic measures to sustain competitiveness. Imabari Shipbuilding increased its stake in JMU, aiming to achieve economies of scale. Mitsui E&S, a shipyard with over a century of history, gradually scaled back its operations, closing its Chiba yard and transferring most of its newbuilding activities to Tsuneishi. Similarly, Sasebo Heavy Industries exited newbuilding in 2022, shifting its focus to repairs and machinery. Collectively, these moves illustrate the industry’s adaptation to intensified competition. Moreover, structural constraints persist. Limited coastal space restricts new shipyard expansion, though upgrade investments aim to increase capacity at existing facilities. Workforce aging remains a concern, as a significant portion of employees approach retirement, reflecting Japan’s demographic trends. As a response, the share of foreign workers has increased to roughly 20% of the workforce, from virtually zero a decade ago and specialized training centres have been established to support skills development”. Intermodal’s analyst also commented that “simultane