Mammoth order emerges in China as Shandong Shipping signs up for 10 VLOCs

State-owned Shandong Shipping has placed an order for 10 methanol dual-fuel very large ore carriers (VLOCs) with Qingdao Beihai Shipbuilding Heavy Industry, a subsidiary of CSSC. These 325,000-dwt Guaibamax-class vessels, designed by the China Ship Design & Research Center, will be deployed on longhaul iron ore routes.

Chinese media report with this latest order, Shandong Shipping is progressing with a 16-VLOC newbuilding programme at Qingdao Beihai. According to the same sources, the new vessels will feature energy-saving technologies aimed at further improving operational efficiency and environmental performance.

Shandong Shipping, which focuses on the dry bulk sector, claims to be the first to invest in building ore carriers of 250,000 dwt, based on information published on its official website. On the shipbuilding side, Qingdao Beihai is reported to be the world’s largest bulk carrier builder, with a current orderbook totalling 15.2M dwt, according to the BRS Shipbrokers 2024 annual review.

This marks the second major order announced in China within a week. Riviera recently reported on COSCO partnering with CITIC Financial Leasing and Fujian Mawei Shipbuilding for the construction of 30 multi-purpose vessels.

VLOC fleet trends

The VLOC sector remains underbuilt. Xclusiv Shipbrokers noted in its latest monthly report (May) that the orderbook-to-fleet ratio currently stands at around 6.5% in dwt terms. As of now, 262 VLOCs with a combined tonnage of 81.8M dwt are in service, while 16 new units totaling 5.2M dwt are under construction.

Xclusiv Shipbrokers also notes that around 10.0% of the active fleet is 16 years old or older. Meanwhile, BRS Shipbrokers highlighted in a report released last year that the average age of the fleet has increased from 6.5 years in 2021 to 9.3 years in 2024.