China’s Cosco Shipping is embarking on a fresh multibillion-dollar newbuilding spree — just days after US President Donald Trump proposed trade levies aimed at breaking Beijing’s grip on global shipbuilding.
The shipping giant, which last year ordered around 100 newbuildings, is returning to domestic shipyards and enquiring about prices and delivery dates for more than 70 vessels of various ship types.
The newbuilding drive appears to send a message that it’s “business as usual” for the behemoth as Washington plots charges on Chinese-built or operated vessels making port calls in the US.
One source said the order spree would underpin the company’s plans to lead as a global shipping player as it sought to renew and expand international and domestic fleets.
Several shipbuilding sources confirmed Cosco’s newbuilding enquiries to TradeWinds.
“Cosco has mapped out a huge newbuilding plan [as] part of its fleet expansion and renewal programme,” said one shipbuilding source.
“It has reserved several berths at shipyards under its group and is also approaching other state-owned and privately owned Chinese shipbuilders for newbuildings.”
Another shipping player said Cosco, which aims to be a leading global shipping company, has a huge old bulker fleet that needs to be replaced.
“For the last 10 years, it was not active in ordering bulk carriers as its focus was on container vessels and other ship types,” said the shipping player.
TradeWinds is told the new ships will be deployed for domestic and international trade.
Panamax and suezmax tankers, kamsarmax and newcastlemax bulk carriers, container ships and stainless-steel chemical tankers are among the ship types sought.
Although the exact number of newbuildings for each type of vessel is not known, Cosco is said to be mulling an order for up to 18 panamax tankers at Dalian Cosco KHI Ship Engineering and a dozen kamsarmax bulk carriers at Mawei Shipbuilding.
“Cosco Shipping is also in talks with Jiangsu New Hantong in China for kamsarmax bulkers too,” said one shipbuilding source.
The company was also said to have enquired about newcastlemax bulker newbuildings at China State Shipbuilding Corp-controlled Qingdao Beihai Shipbuilding Heavy Industry.
TradeWinds is told that Cosco’s affiliated shipbuilding companies, such as Cosco Heavy Industry (Cosco HI) Yangzhou, Cosco HI Dalian and Cosco HI Zhoushan, have blocked out berths for the group company to build suezmax tankers and newcastlemax bulk carriers.
“They [Cosco shipyards] have reserved a number of their 2028 and 2029 berths for Cosco Shipping,” said one broker.
One shipping source said Cosco’s huge newbuilding programme includes an order of up to 30 newcastlemax bulk carriers.
However, he does not know if the 30 vessels include a series of 210,000-dwt bulkers that the company inked at Cosco HI Yangzhou at the end of last year.
In December 2024, Cosco contracted the Jiangsu-based shipyard to build three firm newbuildings with options for an additional five ships.
The firm 210,000-dwt newbuildings, which are set for delivery between August 2027 and November 2028, will be equipped with methanol dual-fuel propulsion systems and be ammonia-ready as well.
On the container ship front, sources said Cosco Lines is behind a series of methanol dual-fuelled 11,000-teu boxships that Seaspan Corp is looking to order at Shanghai Waigaoqiao Shipbuilding.
Leasing companies
Shipbuilding players do not think Cosco will order all the newbuildings under its own account.
They believe Chinese leasing companies will be roped in to help and subsidiaries, such as Cosco Shipping Bulk and Cosco Shipping Energy Transportation, will charter the vessels under long-term contracts.
Cosco has previously collaborated with financial institutions such as Everbright Financial Leasing, Citic Financial Leasing, Bank of Communications Financial Leasing and SPDB Financial Leasing.
Cosco is believed to have already kicked off its massive newbuilding order spree on tankers.
Two weeks ago, Cosco Shipping Energy revealed it grew its tanker fleet with six newbuildings worth $479m. It has ordered two aframax crude carriers, two LR2 tankers and two panamax tankers.
Last year, Cosco ordered around 100 newbuildings including six VLCCs, over 50 midsize bulk carriers, two LNG carriers, several container ships and asphalt tankers.(Copyright)
