Trio of Chinese Shipping Giants Splurge on Over 200 New Vessels

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A container ship prepares for a trial voyage at Cosco Shipping's terminal in Nantong, Jiangsu province, on Jan. 9. Photo: VCG

Three state-owned giants are planning to significantly increase their shipping capacity, two of which intend to add about 100 ships to their fleets, multiple sources told Caixin.

China Cosco Shipping Corp. Ltd. is pushing ahead with a plan to add about 100 vessels, including large bulk carriers, tankers and multi-purpose general cargo ships, the sources said. China Merchants Group Ltd. (CMG) has a similar plan to around 100 ships to its shipping division, while CHN Energy Investment Group Co. Ltd.’s shipping arm is primarily looking to expand its bulk carrier fleet.

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Three Chinese state-owned companies, including China Cosco Shipping and China Merchants Group, plan to add about 100 ships each to their fleets.
China has surpassed Greece as the largest maritime fleet owner, with 78.6% of new global ship orders in 2023 taken by Chinese firms.
Challenges include expensive ship prices, long domestic delivery times, and increased global shipping demand due to trade disruptions and tariff hikes.

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Who’s Who

China Cosco Shipping Corp. Ltd.: China Cosco Shipping Corp. Ltd. plans to add about 100 vessels to its fleet, including large bulk carriers, tankers, and multi-purpose general cargo ships. The company is aligning with national strategies to transport “important strategic materials.” Due to high ship costs and long domestic delivery periods, Cosco Shipping is evaluating cost-effectiveness and timing. It has also placed advanced orders, including two 325,000-ton methanol dual-fuel ore carriers for delivery in 2027.

China Merchants Group Ltd.: China Merchants Group Ltd. (CMG) plans to add about 100 ships to its shipping division. In May, CMG’s shipping arm, China Merchants Energy Shipping Co. Ltd. (601872.SH), ordered 10 210,000-ton bulk carriers worth 5.45 billion yuan ($750 million) from two domestic shipbuilders. The expansion aligns with China's national strategy for transporting important strategic materials and boosting its maritime fleet.

CHN Energy Investment Group Co. Ltd.: CHN Energy Investment Group Co. Ltd.'s shipping arm is primarily focused on expanding its bulk carrier fleet. In May, it purchased 11 bulk carriers from Citic Financing Leasing Co. Ltd. The expansion aligns with the national strategy to have Chinese shippers transport the country’s critical strategic materials.

China Merchants Energy Shipping Co. Ltd.: China Merchants Energy Shipping Co. Ltd. (601872.SH), a Shanghai-listed arm of China Merchants Group Ltd., recently signed orders with two domestic shipbuilders for 10 bulk carriers worth 5.45 billion yuan ($750 million). This is part of a broader plan to increase its shipping fleet, targeting around 100 ships.

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What Happened When

2022：: The Ministry of Transport unveiled a five-year plan aimed at expanding China’s maritime fleet and improving the international competitiveness of its container, crude oil, dry bulk, and specialized transport fleets.

As of August 2023：: China had overtaken Greece as the world’s largest maritime fleet owner by gross tonnage.

In January 2024：: A bulk carrier subsidiary of Cosco Shipping ordered two 325,000-ton methanol dual-fuel ore carriers for delivery in 2027.

In May 2024：: CHN Energy’s shipping arm bought 11 bulk carriers from Citic Financing Leasing Co. Ltd.

In the second quarter of this year：: Global new ship orders totaled 11.07 million compensated gross tons, equivalent to 405 vessels. Of these orders, 78.6% were taken by Chinese firms.

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