Cosco Orders 12 LNG Dual-Fuel Boxships in $2.69 Billion Deal
Key Takeaways
- •Cosco ordered 12 LNG dual-fuel container ships for a total of $2.69 billion.
- •Shanghai Waigaoqiao Shipbuilding will build the vessels at a reported price of $224 million each.
- •Each ship will have a capacity of 21,700 TEU and deliveries are scheduled from 2028 to 2030.
- •The new vessels are expected to boost capacity on major international routes and allow older ships to be redeployed to other markets.
- •Cosco said it plans to fund up to 70% of each ship’s cost with external financing and cover the rest with its own resources.
Cosco Shipping has ordered 12 LNG dual-fuel container ships in a deal worth $2.69 billion as it looks to expand fleet capacity.
The shipbuilding contracts were signed on August 28, according to the company. The vessels will be built by Shanghai Waigaoqiao Shipbuilding at a price of $224 million each, Cosco said in a stock filing on Monday.
The ships will have a capacity of 21,700 TEU and fall within the 22,000-TEU class. Delivery is scheduled between 2028 and 2030, extending the timing of a fleet expansion that will take several years to reach service.
Cosco said the new vessels will add capacity on major international services, including routes between the Far East and Northwest Europe. The additional ships will also allow the company to move existing vessels to emerging and regional markets through capacity cascading, a common way shipping lines redeploy larger ships as new tonnage enters their main trades.
The newbuilds will be fitted with LNG dual-fuel engines capable of operating on LNG and conventional marine fuels. Cosco said the vessels are intended to help meet demand from customers seeking greener supply chains while supporting the expansion of its container shipping business.
The company said it expects to finance up to 70% of each ship’s cost through external financing, with the remainder covered by its own resources. It added that its operating cash flow and relatively low debt levels give it flexibility to manage the investment.
Cosco placed another order for 12 LNG-capable container ships in January, underscoring the scale of its ongoing fleet renewal and the role of LNG-fueled tonnage in current newbuilding plans.
