- COSCO Shipping Development Strengthens Bulk Carrier Segment
- COSCO Shipping Bulk Focuses on Large-Scale Vessels with USD 822 Million Spend
- China Shipbuilding Trading Places Strategic Order for 22 Panamax Bulkers
In terms of the Chinese new building order book, this report looks deeper into the subject using VesselsValue data. It looks at the largest Chinese companies to place orders while giving insight into the vessels presently under construction within Chinese shipyards, reports VV Blog.
Leading Chinese Ordering Companies
China Merchants Shipping occupies the top slot in the order book, having ordered 28 new vessels worth about USD 4.4 billion. The company has spent mainly on new Tankers and LNG units, which constitute about 33% of its overall expenditure, with other orders for Bulkers and Vehicle Carriers. COSCO Shipping Lines ranks second with about USD 3.06 billion in orders for 18 new Panamax Container vessels, with capacities of between 13,400 TEU to 14,000 TEU.
Third Ranking: COSCO Shipping Development orders 20 Bulkers in 2024 at USD 929 million. This is a chopper across the Ultramax to Kamsarmax, apparently building up a real muscle in bulk shipping capacity.
COSCO Shipping Bulk: Large-Cap Vessels
COSCO Shipping Bulk is fourth on the list and invested USD 822 million in 10 new vessels, of which eight are Newcastlemax bulk carriers and two are ore carriers. Deliveries are scheduled between 2026 and 2028.
China Shipbuilding Trading: A Strategic Bulk Carrier Order
China Shipbuilding Trading took the fifth position with an order for 22 Panamax bulk carriers of 80,000 DWT, valued at USD 778 million. These vessels are to be built at Chengxi Shipbuilding and delivered between 2027 and 2028.
Seacon Shipping Group: High Vessel Count, Lower Value
Although shipping orders are not among the top five according to order value, Seacon Shipping Group garnered the second spot in terms of vessel numbers by bagging 26 new orders. The firm mainly concentrated on Tanker’s new buildings, which were invested in for USD 738 million.
Markets at play: Newbuilding prices Rising
Newbuilding prices have reached a record high since 2009, due to the increase in steel costs, limited shipyard availability, and increased demand. The supply-demand imbalance that continues to intensify due to the Red Sea crisis has further been fueling high earnings sentiment and has led to a new order wave across the Container, Tanker, and LNG sectors.
Orders by Sector
Tankers accounted for the largest number of new orders at Chinese shipyards in 2024, with 526 vessels, and a combined value of USD 27.4 billion. This is further testimony to continued confidence in the sector, where strong earnings are still possible.
Bulk carriers are next, with 430 vessels ordered at a combined value of USD 17.7 billion. Demand for bulk cargo transport is still on the rise, supporting further expansion of the fleet.
Container Ships: Fewer Orders, Higher Value
While Container vessels ranked third in terms of order volume, their total contract value far exceeded that of any other sector, reaching USD 46 billion. Significant price increases across all subsectors and size ranges contributed to this valuation.
Investment Trends in Container Newbuildings
Despite the increase in shipbuilding prices, Container new buildings have seen the lowest price rise and are thus a more attractive investment despite longer lead times. For example, the price of a 7,000 TEU Post Panamax new building increased by about 14.45%, from USD 101.99 million to USD 116.73 million. In contrast, 20-year-old Post Panamax vessels increased by as much as 114.99%, rising from USD 20.62 million to USD 44.33 million year-on-year.
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Source: VV Blog
