COSCO rolls out 14‑vessel shipbuilding orders
COSCO Shipping Launches Ambitious Vessel Expansion
COSCO Shipping is making significant strides in its fleet expansion by commissioning 14 new vessels at domestic Chinese shipyards. This initiative, led by COSCO Shipping Development, includes a mix of ten Newcastlemax bulk carriers and four asphalt carriers, aimed at bolstering the company’s operational capabilities. The new vessels are set for long-term charters, with deliveries scheduled between 2027 and 2028, reflecting COSCO’s commitment to meeting future shipping demands.
Details of the Newbuild Orders
The bulk carrier segment features four 210,000 deadweight tonnage (dwt) ships ordered from CSSC Qingdao Beihai Shipbuilding, a prominent player in the shipbuilding industry. Each vessel is estimated to cost around $73.5 million, excluding taxes. Additionally, six more Newcastlemax bulk carriers will be constructed at COSCO Shipping Heavy Industry’s Zhoushan yard. These vessels will be chartered to COSCO Shipping Bulk under agreements lasting 20 years, ensuring a steady stream of revenue for the company.
In a parallel move, COSCO Shipping Development has also secured an order for four asphalt carriers, each with a capacity of 9,000 dwt, from CSSC Huangpu Wenchong. Priced at approximately $28 million each, these tankers will operate under a 15-year charter with COSCO Shipping Specialized Carriers. This strategic acquisition aligns with COSCO’s broader expansion plan, which was introduced last year and encompasses a variety of newbuilds across multiple shipyards in China.
Strategic Fleet Expansion and Future Goals
COSCO Shipping Bulk’s expansion strategy is not limited to bulk carriers and asphalt tankers. The company is also exploring the construction of additional Newcastlemax vessels and has plans for up to 30 multipurpose ships. This diversification is crucial as COSCO Shipping Specialized Carriers aims to enhance its fleet to meet the increasing demand for transporting heavy goods, including infrastructure equipment and wind turbines.
Currently, COSCO Shipping operates a fleet of over 140 vessels, which includes multipurpose ships, heavylift units, asphalt carriers, and pulp carriers. The company has set an ambitious goal to increase its fleet capacity to over 10 million dwt by 2026. In addition to its newbuild initiatives, COSCO Shipping Development has announced a significant sale and leaseback transaction involving a 271,000 cubic meter QC-Max LNG carrier, valued at up to $360 million. This deal, which includes a 20-year lease term, underscores COSCO’s diversified approach to fleet investment and long-term chartering strategies.
