COSCO Shipping eyeing methanol for new round of ship orders

More newbuildings might be in the pipeline for COSCO Shipping Lines, as the fourth liner operator is thinking of adding 32 container ships that are already under construction.

The Chinese state-controlled shipping giant is said to be ordering six 23,000 TEU vessels and nine 15,000 TEU ships at its sister yard, Cosco Shipping Heavy Industry Yangzhou, which is currently building ten 16,000 TEU ships for the liner operator.

The 23,000 TEU ships will be dual-fuelled with methanol, while the 15,000 TEU vessels will be methanol-ready; the total contract value is estimated to be at least US$3 billion.

COSCO Shipping, including OOCL, has 32 ships of around 580,000 TEU on order at affiliated ship builders, and these will be delivered from 2023 to 2025.

The company’s parent, COSCO Ship Holding, said in its first half report that as the world moves towards achieving zero carbon emissions in 2050, green and low-carbon development has become the common direction of global economic and social development.

Due to this, COSCO Ship Holding is developing innovative technologies in green energy, low carbon and emission reduction, and accelerated the green and low-carbon development of the fleet and ports.

The group also acknowledged challenges to its earnings as freight rates continue their downward trajectory, leading to talk that the party for liner operators is over.

The group said, “With the gradual return of the supply chain to normal, the group will focus on strengthening the management and control of major operating cost items such as empty container transportation, fuel costs, and cargo costs, strictly implement cost control, and improve its ability to respond to market changes and inflationary pressures.”

Source: Container-news

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