COSCO has signed a contract to order a series of Newcastlemax vessels and series of 18 new container ships, worth approximately $2.7 billion, including 18,000 TEU and 3,000 TEU LNG vessels, with delivery expected between 2028 and 2029. This aims to expand its scale, diversify its fuel sources, and increase the flexibility of its shipping chain.
Records that have been made public indicate that COSCO has placed an order for eighteen additional container ships. Twelve has the capacity of 18k TEUs that will be constructed at CSSC Jiangnan Shipyard with dual-fuel LNG engines. The remaining with the capacity of 3K TEUs will be constructed at COSCO Zhoushan Shipyard with conventional engines. Additionally, three Newcastlemax bulk carriers with a deadweight tonnage of 210K that are intended to transport containers in addition to bulk and general cargo were recently ordered by COSCO Shipping Bulk. With this action, COSCO is taking a new step toward increasing the fleet’s operating flexibility.
This most recent order is an example of COSCO’s strategic change toward increased fuel alternatives and carrying capacity. The tendency of dissolving the boundaries between various shipping sector segments is reflected in the integration of container capabilities onto large bulk carriers. The capacity to carry a wide variety of cargoes is becoming an essential competitive advantage in a turbulent market, particularly for international fleet owners like COSCO.
In addition to solidifying COSCO’s standing as one of the top container shipping firms in the world, the addition of LNG to its fleet of large container ships indicates a trend toward getting ready for medium- and long-term operational and environmental requirements. Nearly 1.4 billion yuan, or around US$200.75 million, is spent on each LNG vessel. These 12 vessels are expected to be delivered between 2028 and 2029, with a total contract value of 16.8 billion yuan. Furthermore, each of the six 3,000 TEU container ships built at COSCO Zhoushan Shipyard cost around to 330 million yuan, or roughly US$47.3 million. Delivery of these ships is anticipated between mid-2028 and the end of the year. After concentrating on methanol and conventional propulsion systems, COSCO has now formally incorporated LNG as a fuel choice for the first time.
At CSSC Qingdao Beihai Shipbuilding, three Newcastlemax vessels intended for immediate use of ammonia and methanol will be constructed. The China Classification Society classified the design, which was completed by the Shanghai Merchant Ship Design and Research Institute. The ships, which are almost 300 meters long and 50 meters wide, have container handling capabilities in addition to the conventional Newcastlemax size, which is unusual in a market that has historically concentrated bulk cargo. Given the scope and financial support of the project, the contract includes COSCO Shipping Bulk, CSSC Beihai Shipbuilding, CSSC Trading, and Zheshang Financial Leasing.
This is a major improvement for Beihai Shipbuilding’s 210,000 DWT vessel platform, a flagship product line that keeps the shipyard at the top of the worldwide Newcastlemax market. Seacon Shipping Group has placed more orders for comparable ships with the shipyard, strengthening its market position.
This procurement is a component of COSCO’s plan to upgrade and grow its Newcastlemax fleet. As part of the second wave of Newcastlemax orders in 2025, the firm is also listed as the end operator for four 210,000 dwt vessels constructed by Dalian Shipbuilding Industry Co. In the past, COSCO authorized orders for 10 comparable boats at CSSC Qingdao Beihai and COSCO Shipping Heavy Industry Zhoushan, with delivery anticipated by the end of 2028.
The new LNG vessel series is based on an 18,000 TEU design created by Jiangnan, according to Alphaliner statistics. For COSCO’s Ocean Alliance partner, CMA CGM, Jiangnan is presently constructing 12 vessels with the same design and a same delivery schedule between 2028 and 2029. Jiangnan has been a longstanding shipbuilding partner of COSCO, having previously supplied the business with container ships with capacities of 4,700 TEU, 5,100 TEU, and 21,000 TEU.
After MSC, Maersk, and CMA CGM, COSCO is presently the fourth-largest container shipping firm in the world. With a total carrying capacity of around 3.59 million TEU, the group operates over 550 boats. According to Alphaliner statistics, COSCO had 106 vessels under construction with a combined carrying capacity of around 1.38 million TEU prior to signing this latest set of contracts.
There is a clear precedence during times of market disruption brought on by the epidemic, but the capacity to transport containers on bulk carriers was formerly thought to be a temporary solution. Many shipowners flexibly loaded vehicles, lumber, and containers onto non-containerized vessels when container ship capacity was limited. The design of COSCO’s new ships directly incorporates the lessons learnt from adaptation in fleet operations.
