COSCO launches 14-vessel newbuilding programme covering bulkers and tankers

In a stock exchange announcement dated 29 July, COSCO Shipping Development (Hainan) revealed it has placed orders for 10 210,000-dwt Newcastlemax bulk carriers that are methanol- and ammonia-ready. The total contract value is close to US$730M.

Construction of the 10 vessels will be split between two shipyards: COSCO Shipping Heavy Industry Zhoushan will build six vessels, while Qingdao Beihai Shipbuilding, a subsidiary of CSSC, will handle the remaining four. All ships are scheduled for delivery between December 2027 and the end of 2028.

In a notable development, COSCO Shipping Bulk has agreed to charter all 10 bulk carriers under long-term leases of 20 years.

This major investment in the dry bulk sector comes on the heels of COSCO’s involvement in a three-party initiative to build 30 multi-purpose carriers.

Asphalt tanker order

In addition to its dry bulk expansion, COSCO has also signed agreements with two shipyards to construct four 9,000-dwt asphalt tankers. The order will be divided between Fujian Mawei Shipbuilding and CSSC’s Huangpu Wenchong Shipbuilding. Upon delivery, the vessels will be chartered to COSCO Shipping Specialized Carriers.

Notably, Riviera has reported COSCO has signed a letter of intent with Dalian Shipbuilding Industry Co for the construction of two VLCCs, with deliveries expected by July 2027.

LNG carrier deal

The final highlight of COSCO’s recent expansion wave is the approval of a sale and leaseback deal for a 271,000-m³ LNG carrier. The vessel’s purchase price is capped at US$360M, although details regarding the chartering arrangements have yet to be disclosed.