COSCO Shipping Holdings has significantly increased its commitment to new container ship construction, committing $8bn to build 48 vessels by 2026, according to Splash 247. The latest orders, worth $2.99bn, consist of 12 LNG dual-fuel megamaxes built at Shanghai Waigaoqiao Shipbuilding and six wide-beam feeder ships constructed at Huangpu Wenchong, both part of China State Shipbuilding Corporation (CSSC).
Details of the Newbuilds
The 12 LNG dual-fuel megamaxes will each have a nominal capacity of 21,700 teu, as reported by Waigaoqiao, and are priced at $224m each, making the 12-ship programme valued at $2.688bn. The six wide-beam feeder ships will be 3,200 teu units, costing RMB339.8m ($50m) each, totaling RMB2.039bn ($300m) for the six ships. Together, these newbuilds will add 283,200 teu of nominal capacity, according to Splash 247.
These orders build upon earlier commitments made by COSCO Shipping in 2026. In January, the group ordered 12 LNG dual-fuel 18,000 teu ships at Jiangnan Shipyard and six 3,000 teu conventional-fuel units at COSCO Zhoushan, valued at approximately $2.7bn. In April, it added another 12 LNG dual-fuel 13,600 teu vessels worth $2.22bn through Orient Overseas International. Collectively, these orders bring the total 2026 newbuilding tally to 48 containerships with around 676,800 teu of capacity and $8bn in investment, with 36 LNG dual-fuel vessels accounting for almost 640,000 teu, according to Splash 247.
The group's move into LNG-powered container ships, following their previous focus on methanol and conventional propulsion, is notable. This shift highlights COSCO's commitment to aligning with global emissions reduction goals and diversifying its fleet to include more environmentally friendly options.
Market Impact
The substantial investment by COSCO Shipping in new containerships will significantly impact the global container shipping market. With an increased fleet capacity and focus on LNG, the company will have a stronger competitive position in both regional and international trades. This move will also influence charter rates and supply-demand dynamics in the container shipping sector, potentially leading to increased competition and changes in trade routes and logistics strategies.
What this means for operators
The expanded fleet and focus on LNG-fuelled vessels will require other container operators to reassess their strategies, potentially leading to increased competition and the need for more environmentally compliant operations. Operators may also need to consider the potential rise in charter rates and the changing landscape of sustainable shipping practices.
