China Merchants Shipping Leases Two New Capesize Carriers

• China Merchants Energy Shipping Co., Ltd. (China Merchants Shipping) plans to enter into long-term lease agreements for two newly constructed capesize bulk carriers.
• The lease terms, valued at approximately RMB 730 million, will span up to five years, with delivery of the vessels scheduled in 2026.
• This strategy aligns with the company’s goals to modernize its fleet, diversify investment risks, and enhance capacity management.
• The transaction highlights China Merchants Shipping’s focus on integrating industrial finance and strengthening its position as a comprehensive leasing and shipping service provider.

Strategic Decision for Long-Term Leasing

China Merchants Shipping has announced its decision to lease two newly constructed capesize bulk carriers through its wholly-owned subsidiary. The long-term lease agreements, with a total value of RMB 730 million, will not exceed five years. These vessels are expected to join the fleet by 2026.

Rationale Behind Long-Term Leasing

The company’s decision reflects a strategic approach to maintaining competitiveness in the bulk shipping sector. The benefits of this long-term leasing strategy include:

• Fleet Modernization: Maintaining a young, efficient fleet to meet industry standards.
• Investment Diversification: Reducing risk by spreading capital across multiple assets.
• Capacity Control: Offering flexibility in scaling operations and responding to market demand fluctuations.

By focusing on consistent leasing for similar vessel types, China Merchants Shipping can better adapt to market changes while ensuring operational efficiency and maintaining a competitive edge.

Looking to the Future

This related-party transaction highlights China Merchants Shipping’s commitment to expanding its expertise in the shipping sector and showcasing innovative approaches to integrating industrial finance. The company’s strategic focus remains on operational efficiency, risk management, and scaling its operations. These efforts align with its vision of becoming a leading domestic provider of comprehensive leasing and shipping services.