COSCO Secures Massive $2.7 Billion Order: A Strategic Pivot to LNG-Powered Container Vessels

COSCO SHIPPING container ship (Photo: COSCO SHIPPING / Phaata)

China's state-owned shipping conglomerate, COSCO, has confirmed a massive shipbuilding campaign, planning to add 18 newbuildings valued at approximately USD 2.7 billion. This move aims not only to expand fleet scale but also to diversify future fuel options.

Billion-Dollar Deal and the Shift to LNG

In recently disclosed regulatory filings, COSCO stated it has ordered twelve 18,000 TEU LNG dual-fuel container vessels at Jiangnan Shipyard, a subsidiary of the China State Shipbuilding Corporation (CSSC). Additionally, the carrier has ordered six conventional fuel vessels with a capacity of 3,000 TEU at COSCO Zhoushan Shipyard.

The twelve LNG-capable vessels are priced at just under RMB 1.4 billion each, equivalent to approximately USD 200.75 million per vessel, bringing the total contract value to RMB 16.8 billion. The delivery schedule is set to span across 2028 and 2029.

This represents a significant milestone, marking COSCO's first move to select LNG as an alternative marine fuel. Until now, the group has primarily focused on Methanol fuel alongside traditional propulsion.

Technical Details and Strategic Partners

According to data from Alphaliner, these vessels are developed based on Jiangnan Shipyard's in-house 18,000 TEU LNG design. Notably, this shipyard currently holds orders for over a dozen vessels of the same design from CMA CGM - COSCO's partner in the Ocean Alliance - with delivery schedules also set for 2028 and 2029.

Jiangnan Shipyard has a rich history of collaboration with COSCO, having previously delivered 5,100 TEU, 4,700 TEU, and 21,000 TEU container series to the group.

Concurrent with the LNG order, COSCO has signed contracts for six smaller 3,000 TEU container vessels at COSCO Zhoushan Shipyard. Each vessel is priced under RMB 330 million, or approximately USD 47.3 million, with expected delivery from mid-2028 to the end of that year.

Consolidating Top 4 Global Position

Factoring in its sister brand OOCL, COSCO currently ranks as the world's fourth-largest container carrier, trailing MSC, Maersk, and CMA CGM. The group operates a fleet of approximately 550 vessels with a total capacity of roughly 3.59 million TEU.

Prior to these latest orders, according to Alphaliner data, COSCO had an orderbook of 106 vessels with a total capacity of approximately 1.38 million TEU. The addition of significant transport capacity combined with new fuel technology underscores COSCO's ambition to maintain its competitive position on the international maritime map.

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Source: Phaata.com (According to Splash247)

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