COSCO Orders 10 VLCCs, Adds 14 More to Its Tanker Fleet

COSCO Shipping Energy Transportation has committed more than US$1.4 billion to 10 VLCC newbuildings and separately lined up 14 more for charter hire of up to US$2.6 billion, according to 9 November stock exchange disclosures.

Two subsidiaries signed the shipbuilding contracts: six VLCCs worth about US$850 million with COSCO Shipping Heavy Industry (Yangzhou), and four worth about US$565 million with CSSC's Dalian Shipbuilding Industry Co (DSIC).

The delivery calendar separates those commitments. The DSIC contract targets completion by May 2030, the Yangzhou deliveries run through November 2030, and the 14 chartered newbuilds arrive progressively throughout 2030.

On its website, COSCO Shipping Energy Transportation describes its fleet as "more than 150 tankers with a combined capacity exceeding 20M dwt, including 140 owned vessels and 13 chartered-in ships." That breakdown totals 153 tankers.

The disclosed pipeline could add 24 ships, equivalent to roughly 16% of the existing tanker fleet, if every vessel joins the fleet and no ships leave it.

What has COSCO ordered, and when?

Six VLCCs are going to COSCO Shipping Heavy Industry (Yangzhou) under an approximately US$850 million contract. Deliveries run through November 2030, and the vessels will incorporate LNG-fuel-ready systems and other energy-saving technologies.

The second order covers four VLCCs at DSIC for approximately US$565 million. The 9 November filings specify "LNG/methanol dual-fuel-ready propulsion systems" for those vessels, alongside other energy-saving technologies, and schedule completion by May 2030.

Based on the disclosed contract totals, the six-vessel order averages about US$141.7 million per ship, while the four-vessel order averages about US$141.3 million. The announcement provides no vessel-by-vessel prices, individual deadweight tonnage ratings or payment schedules.

The 10 owned ships alone would increase COSCO's tanker headcount by about 6.5%. Including all 14 charters, the potential addition reaches roughly 15.7%. Those percentages measure ships rather than cargo capacity, which depends on each vessel's size and loading rate.

What does the 14-vessel charter package add?

COSCO plans to bareboat charter 14 newbuild VLCCs from six domestic Chinese financial leasing companies: Bank of Communications Financial Leasing, ICBC Financial Leasing, ABC Financial Leasing, BOC Financial Leasing, CITIC Financial Leasing and Minsheng Financial Leasing.

Total hire payments can reach US$2.6 billion. Each charter period will not exceed 20 years, and deliveries are expected progressively throughout 2030. The series comprises 10 LNG dual-fuel vessels and four conventionally fueled ships.

At the maximum, US$2.6 billion equates to about US$185.7 million per vessel. If every lease ran the full 20 years and payments spread evenly, that ceiling would amount to US$9.3 million per vessel annually. The filings disclose neither individual lease tenors nor annual hire rates, so that calculation sets an upper boundary rather than a contracted price.

What changes for shippers, carriers and forwarders?

Under the disclosed structure, the six leasing companies provide the vessels for COSCO's bareboat charters. That diversifies the funding route instead of requiring COSCO to buy all 24 ships outright, although the hire commitments still create contractual costs extending as long as 20 years.

For shippers and cargo owners, the announcement produces no immediate freight-rate change and no service commitment. It adds a future tanker-supply variable: 24 ships due during 2030 could ease the charter market if demand absorbs them, or add pressure if it does not.

For COSCO, carriers and forwarders, the financing choice matters. The yard contracts commit US$1.415 billion to 10 ships, while the charters bring hire obligations of up to US$2.6 billion. The disclosures give no annual charter rate, payment schedule, finance margin or vessel-level employment plan, so forwarders cannot translate these commitments into cargo slots or fuel-cost savings.

How much tanker capacity will actually arrive?

The fuel specifications differ across the three packages. The Yangzhou ships carry LNG-fuel-ready systems; the DSIC ships have LNG/methanol dual-fuel-ready propulsion; the charter series mixes 10 LNG dual-fuel vessels with four conventionally fueled ships. COSCO gives no comparable energy-saving specifications for those four conventionally fueled charter vessels.

The absence of individual deadweight figures prevents a reliable capacity calculation. COSCO reports more than 20 million dwt across its existing tanker fleet, but without the dimensions of the 24 new ships, the announcement does not support a precise capacity percentage.

It also does not say whether the deliveries replace retirements or vessel sales, or whether COSCO will assign the ships to specific routes. Those omissions matter because vessel count, deadweight and trade assignment determine how much usable cargo capacity reaches the market.

The tanker orders form part of a wider COSCO Group investment program. The company has continued heavy newbuild spending this year after several years of strong ordering, including major recent deals for container ships and bulk carriers, among other vessel types. The announcement gives no values or vessel counts for those container and bulk orders.

With 10 owned ships and 14 chartered ships due in 2030, COSCO has disclosed a material expansion tied to LNG and fuel flexibility, but no rate strategy. The capacity effect will depend on actual deliveries, vessel sizes and deployment decisions.