January 15th, 2025 – Cosco Shipping Holdings is continuing to expand both its long-haul and feeder fleets, committing nearly $2.7 billion to new shipbuilding orders covering 18 container vessels scheduled for delivery in 2028 and 2029.
The largest portion of the investment totals $2.4 billion and involves a contract with Shanghai-based Jiangnan Shipyard Group for 12 very-large 18,000-TEU container ships powered by liquefied natural gas (LNG) using dual-fuel technology. Jiangnan Shipyard operates as a subsidiary of China State Shipbuilding Corporation, reinforcing Cosco’s close ties with major domestic shipbuilders.
This agreement marks Cosco Shipping’s third shipbuilding contract with a CSSC-affiliated yard since China Cosco Shipping Group and CSSC signed a broad $7 billion framework agreement in early December that covers a total of 87 vessels. Two additional CSSC-related orders were finalized just last week, highlighting the pace at which Cosco is moving to modernize and scale its fleet.
The Jiangnan contract is notable as the first order placed this year for LNG-powered very-large container ships, underscoring the growing role of LNG as a preferred next-generation marine fuel. By the end of last year, global orders for LNG-fueled container ships had reached approximately 4.1 million TEUs, nearly double the 2.1 million TEUs on order for methanol-fueled vessels. With this latest commitment, total orders for very-large container ships now exceed 1 million TEUs in capacity.
Cosco indicated that Jiangnan Shipyard was selected after offering the most competitive overall terms, including a shorter delivery timeline compared with two other bidders. Although the per-vessel price fell in the middle of the submitted quotations, it remained broadly comparable to the lowest offer.
Once delivered, the new LNG-powered ships will be deployed on major east–west trade lanes. In addition to expanding Cosco’s overall fleet capacity, the vessels will allow the carrier to phase out older tonnage, improving operational efficiency and environmental performance.
Alongside the large-vessel order, Cosco also finalized a smaller contract valued at $284 million for six 3,000-TEU conventionally powered container ships. These vessels will be built by Cosco Shipping Heavy Industry (Zhoushan), a shipbuilding subsidiary of the group located in eastern China, with deliveries planned between June and December 2028. This order falls outside the earlier $7 billion framework agreement with CSSC.
The regional-sized ships are intended for international feeder and regional routes, where they are expected to provide stable capacity while helping to lower operating costs. Cosco also views these vessels as supporting its long-term growth strategy in emerging regional markets, including areas outside China, as it continues to diversify its global network.
