COSCO and MSC went head-to-head as top newbuilding investors in 2024

According to BRS Shipbrokers’ annual review, COSCO led globally in terms of vessel count, while MSC dominated in dwt. The Chinese shipping group signed contracts for 102 new vessels last year, totalling 12.0M dwt, whereas the Aponte family-controlled MSC placed orders for 74 vessels, amounting to 13.0M dwt.

"COSCO and MSC made headlines in 2024 by placing a spectacular number of newbuilding orders, alongside their acquisitions in the second-hand market," BRS Shipbrokers noted.

COSCO has invested heavily across multiple segments, including bulk carriers, tankers, container vessels, and gas carriers. Meanwhile, MSC remained the biggest spender in the container ship sector.

Industry sources recently noted that COSCO’s next focus in shipbuilding is the dry bulk sector, with discussions underway for an order of multi-purpose carriers at a domestic shipyard. BRS Shipbrokers pointed out that COSCO’s aggressive newbuilding strategy highlights a key advantage of the Chinese shipbuilding industry: China’s strong domestic shipowning sector, which naturally supports a high volume of orders at local shipyards.

MSC has also begun 2025 with strong momentum, signing a contract for four 21,700-TEU LNG dual-fuel container vessels with China’s Zhoushan Changhong International shipyard, with a pair of two-vessel extension options. According to Alphaliner, the liner giant currently has 132 vessels on order, with a combined capacity of 2M TEU.

Top 10 newbuilding investors 

Looking at the biggest investors in newbuildings last year, BRS Shipbrokers reported that the top 10 contractors worldwide placed orders for 487 vessels, representing 19.6% of all newbuilding activity in 2024.

Singapore-based Eastern Pacific Shipping ranked third (in vessel count terms) with orders for 71 vessels totalling 7.7M dwt, followed by Hong Kong-based Cido Shipping, which secured 44 vessels amounting to 2.8M dwt. Rounding out the top five, China Merchants Group placed orders for 38 ships, totalling 8.0M dwt.

The remaining companies in the top 10 list include Taiwan’s Wan Hai Lines, tonnage provider Seaspan, Greek shipowner George Prokopiou’s group, QatarEnergy LNG, and UK-based Union Maritime.

2025 outlook

BRS Shipbrokers described 2024 as a standout year for global newbuilding orders, second only to 2007. This surge has resulted in extended orderbooks, with deliveries for some segments already pushed to 2028 and beyond.

However, analysts believe that 2025 is unlikely to match last year’s activity, despite the ongoing need for new tonnage due to stricter environmental regulations. They cite three key factors shaping market dynamics. First, freight markets in several segments have shown signs of weakness, with the LNG carrier sector being a notable example.

Additionally, import tariffs recently announced by the new US administration are expected to hinder business and global economic growth. “A global tit-for-tat trade war is on the horizon, threatening to impact international trade and, in turn, the shipping industry,” analysts warned.

Another potential disruptor is the proposed US port fee on Chinese-owned and Chinese-built vessels. While no official decision has been made, initial assessments suggest that such a policy would discourage further investments.

Considering these challenges, BRS Shipbrokers forecasts that total new orders in 2025 will amount to approximately 100M dwt, a sharp decline from the 193.1M dwt ordered in 2024.

In terms of construction costs, analysts expect the new wave of shipbuilding expansion to put downward pressure on prices. They anticipate a price decline of over 10% in 2025, depending on the type and size of vessels. However, due to the considerable existing order backlog, some price resistance is likely to remain.