COSCO Shipping Development Orders 16 VLCCs in $2.01 Billion Deal
Shanghai-based COSCO Shipping Development has placed a major order for 16 Very Large Crude Carriers (VLCCs) worth 13.43 billion yuan ($2.01 billion) with China State Shipbuilding Corporation (CSSC) affiliates, marking a substantial step in its maritime fleet expansion.
Major Fleet Expansion
Under the newbuilding contracts, COSCO Shipping Development’s subsidiary Oriental Fleet International will acquire 16 307,000 DWT-class crude oil tankers. The methanol- and LNG-ready vessels are scheduled to be constructed by Dalian Shipbuilding Industry Co. (DSIC), with deliveries planned between late 2029 and 2030. Each vessel carries an individual contract price of approximately 839 million yuan ($125.6 million), financed through a combination of internal corporate resources and external debt financing.
Long-Term Charter Agreements
Following delivery, COSCO Shipping Development plans to lease all 16 VLCC orders to Pan Cosmos Shipping Enterprises, a subsidiary of COSCO Shipping Energy Transportation, under 20-year bareboat charter agreements.
According to company disclosures, eight of the vessels will operate on fixed daily charter rates, while the remaining eight will feature a flexible rental structure combining a minimum base rate with a profit-sharing mechanism linked to the Baltic Exchange’s monthly average TD3C time charter equivalent (TCE) index. COSCO Shipping Energy reported that the total annual rent for the 16 tankers is expected to range between 680 million yuan and 1 billion yuan, with an average daily rate of 116,520 yuan ($17,460) per vessel excluding tax.
The acquisition represents one of the largest single VLCC newbuilding contracts placed in recent years, reinforcing China State Shipbuilding’s orderbook dominance and expanding COSCO’s long-term vessel leasing strategy. By securing dual-fuel-ready designs and long-term charter coverage, COSCO Shipping Development positions its fleet to meet evolving decarbonization mandates while providing stable long-term cash flow across varying tanker market cycles.
