COSCO Shipping Orders 18 Containerships Worth Nearly $3B

COSCO Shipping Holdings subsidiary COSCO Asset Management entered into shipbuilding agreements on to construct 18 container vessels for an aggregate value exceeding $2.9 billion.

Under the first contract, Shanghai Waigaoqiao Shipbuilding and China Shipbuilding Trading will build 12 liquefied natural gas dual-fuel container vessels of 22,000 TEU capacity for $224 million each, totaling $2.688 billion.

The second contract involves CSSC Huangpu Wenchong Shipbuilding and China Shipbuilding Trading constructing six 3,200 TEU container vessels for an aggregate consideration of CNY2.039 billion ($302.05 million).

Deliveries for the 22,000 TEU vessels are scheduled between 2028 and 2030, whilst the feeder vessels are slated for handover between 2028 and 2029.

The larger vessels will operate on routes such as the far east to Northwest Europe, whereas the six feeder units are planned for regional feeder operations around core hub ports.

Up to 70 per cent of the purchase price for each vessel may be funded through external debt financing or bank loans, with any remaining balance covered by internal cash resources.

The company noted that the selected shipyards offered favourable delivery schedules and technical capabilities that met operational requirements, with pricing comparable to the lowest bids received during preliminary evaluations.