Scope of the order
The Chinese carrier’s asset‑management arm has entered into two separate building contracts that together cover eighteen newcontainer vessels valued at just under US$3 billion. The programme comprises twelve ultra‑large container ships (ULCS) of 22,000 TEU capacity and six smaller feeder vessels of about 3,200 TEU each.
Contractual details and shipyards
Baird Maritime reports that the first contract assigns Shanghai Waigaoqiao Shipbuilding together with China Shipbuilding Trading to construct the twelve ULCS. Each vessel carries a price tag of US$224 million, bringing the total for this tranche to roughly US$2.688 billion.
The second agreement designates CSSC Huangpu Wenchong Shipbuilding – also working with China Shipbuilding Trading – to build the six feeder ships. The aggregate consideration for these smaller vessels is CNY 2.039 billion, equivalent to about US$302 million.
Delivery schedule and intended routes
The larger 22,000‑TEU ships are slated for delivery between 2028 and 2030, while the six feeder units are expected to be handed over from 2028 through 2029. According to the Journal of Commerce, COSCO says the ULCS will “boost (its) competitive advantage” on Far East‑to‑Northwest Europe services.
In contrast, the feeders are earmarked for regional operations around core hub ports, supporting intra‑Asian and short‑haul trade lanes.
Financing structure
Up to 70 per cent of each vessel’s purchase price may be financed through external debt or bank loans; the balance will be covered by internal cash resources, as outlined in the Baird Maritime brief.
The contracts were awarded after COSCO evaluated delivery timelines and technical capabilities, concluding that the chosen yards offered “pricing comparable to the lowest bids received during preliminary evaluations,” a statement also reflected in the TradeWinds coverage of the deal.
Strategic implications for COSCO
By adding twelve ULCS capable of carrying 22,000 TEU, COSCO aims to reinforce its presence on long‑haul routes where economies of scale are increasingly decisive. The feeder vessels will expand capacity on secondary lanes and provide flexibility in hub‑spoke networks.
What this means for operators
Ship owners and charterers should anticipate a modest increase in available 22,000‑TEU slots from 2028 onward, potentially easing current capacity constraints on Far East‑Europe trades. The mixed financing approach signals that COSCO is leveraging relatively low‑cost external funding to accelerate fleet renewal without over‑leveraging cash reserves. Operators may therefore see more competitive freight rates as the new ships enter service and bring newer, fuel‑efficient technology to market.
