Difficult Days in Shipbuilding Industry and Global Competition

Murat Kıran (President of GISBİR): He emphasized that rising costs have placed a heavy burden on the industry. Kıran stated that daily labor costs have reached approximately 2,500 dollars per person, and pointed out with examples that repair and maintenance work carried out in Turkey shows a significant cost difference compared to China. He also underlined that bureaucratic obstacles challenge investors, and regional wars narrow trade routes, adding: “We cannot afford to lose anyone, we must proceed more carefully and more prudently.”

Başaran Bayrak (Assembly President): He said that labor costs in the shipbuilding and repair sector have increased dramatically. Labor expenses, which accounted for 19% of total costs two years ago, have now risen to 40%. Bayrak noted that with this ratio, it is very difficult for the sector to be sustainable, and expressed hope that the market could revive once the Russia-Ukraine war ends.

Orhan Dinç (President of Bodrum Chamber of Shipping): He stated that blue tourism and the yacht industry are facing similar problems. Dinç emphasized that the 2025 and 2026 seasons fell below expectations, negatively affecting yacht manufacturing, maintenance, and repair. He added: “We do not want to lose hope, but the picture looks pessimistic.”

Global Competition: China and Europe
The year 2025 once again revealed China’s undisputed leadership in the global shipbuilding industry. Ranking first in production volume, new orders, and total order backlog, China reinforced its decisive position in the world maritime sector.
Chinese shipyards completed more than half of global ship production throughout the year; in new orders, China left its competitors far behind, reaching historic levels. Large container ships, tankers, LNG carriers, and new-generation eco-friendly vessels stood out in China’s order portfolio. State-supported industrial policies, a strong supply chain, and extensive production infrastructure were the main factors that increased China’s competitiveness. Experts state that this picture shows China has become not only the largest producer but also one of the central hubs of the global maritime supply chain.
Meanwhile, the European Union is preparing to take new steps to support its own shipbuilding industry against China’s rising power. On February 10, the European Commission will present proposals aimed at encouraging ship and equipment production within EU countries. The draft document foresees that public institutions purchasing ships or equipment will be encouraged to prioritize non-price factors such as sustainability and whether the product is manufactured in the EU. This approach could lead to increased production in Europe of ferries, research vessels, tugboats, icebreakers, and salvage ships. The European Investment Bank is also expected to play an important role by facilitating access to financing for shipowners, thereby boosting demand for ships built in the EU.

Editor’s Comment
The shipbuilding industry in Turkey is struggling with cost pressures, bureaucratic obstacles, and regional crises. Despite Turkey’s strategic advantages, competitiveness is weakening, while China consolidates its leadership globally and Europe seeks to revive its own production capacity.
The message from sector representatives is clear: “Steps must be taken more carefully, more prudently, and more sustainably.” Those who survived the 2008 crisis became the winners of today. The same picture exists now: those who are patient and visionary will emerge stronger from this storm.