COSCO Invests USD 1.1 Billion in 15 New Newcastlemax Bulk Carriers

Source: Splash247

COSCO Shipping Development has officially approved a plan to build 15 Newcastlemax bulk carriers as part of its long-term fleet expansion strategy. The investment aims to strengthen the company's ship leasing business, with a total committed investment of RMB 7.92 billion (approximately USD 1.1 billion).

Orders Allocated to Two Major Chinese Shipyards

The large-scale newbuilding program has been awarded to two leading Chinese shipyards:

Ten 210,000-DWT Newcastlemax bulk carriers will be constructed by Shanghai Waigaoqiao Shipbuilding.

The remaining five vessels will be built by Nantong Xiangyu Shipbuilding under a separate construction contract.

The investment cost for each vessel has been set at RMB 528 million (excluding tax).

Under the delivery schedule, the five vessels being built by Nantong Xiangyu are expected to be delivered between May and December 2030. The ten vessels under construction at Shanghai Waigaoqiao Shipbuilding will follow, with deliveries scheduled from June to December 2030.

In line with the maritime industry's decarbonization roadmap, all 15 vessels will feature fuel-ready designs, enabling future conversion to methanol- or ammonia-fueled propulsion systems.

Financing Structure and Long-Term Deployment Strategy

COSCO Shipping Development stated that 25% of the project cost will be financed through the company's own capital, while the remaining 75% will be funded through external credit financing.

Upon delivery, all 15 vessels will be deployed under 20-year long-term charter agreements with Wai Fung Shipping, a subsidiary of COSCO Shipping Bulk.

The annual charter hire for each vessel will be capped at RMB 59.4 million (excluding tax). According to the company, this charter rate has been structured to cover potential future costs associated with retrofitting the vessels for dual-fuel propulsion.

The latest investment forms part of COSCO Shipping Development's long-term strategy to expand its ship leasing business and modernize its dry bulk fleet. To date, the company has secured a series of newbuilding orders and long-term charter agreements covering dozens of newly built vessels, reinforcing its long-term growth strategy in the global shipping market.

See more:

• MSC Merges West Africa and Red Sea Services to Optimize Network Operations
• COSCO schedules: Vietnam - North America in Aug 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Aug 2026
• CMA CGM Revises FAK Rates on Three Key Trade Lanes Effective Mid-August 2026
• Tanker Freight Rates Face Sharp Upside Risk as Security Threats Escalate in the Red Sea and the Gulf
• SITC Restructures China–Vietnam–Malaysia Service Network
• Panama Canal Expands Preventive Maintenance Program to Enhance Reliability and Increase Capacity
• Maersk Revises Emergency Contingency Surcharge (ECS) for Shipments via Oman and UAE Transshipment Hubs
• ONE Adjusts Emergency Fuel Surcharge Across Its Global Network
• Houthis Threaten to Target Vessels Calling at Saudi Ports, Escalating Supply Chain Risks
• MSC Restructures Transatlantic Network, Suspends NEUSEC2 Service
• MSC Introduces Peak Season Surcharge (PSS) for North Europe–North America Trade

Source: Phaata.com (According to Splash247)

► Find Better Freight Rates & Logistics Service Providers!