Chinese shipping giant COSCO has been linked to a fresh newbuilding project at domestic shipyards, this time turning its focus toward the tanker market.
According to market and shipbroking sources, COSCO has signed a letter of intent (LOI) with Dalian Shipbuilding Industry Co (DSIC) for two VLCCs, with deliveries expected by July 2027. Shipbrokers report these are the final remaining VLCC slots for 2027 at DSIC, amid tightening availability across major Chinese shipyards.
While pricing details remain largely undisclosed, some sources suggest the LOI is based on a price of approximately US$120M per vessel. For comparison, Greek-based Xclusiv Shipbrokers recently estimated the cost of a VLCC newbuilding at a South Korean yard at around US$125M.
The pricing gap between Chinese and South Korean yards aligns with the reported figures, according to market observers. In its latest annual review, BRS Shipbrokers noted that as of late 2024, Chinese yards were quoting US$124M per VLCC, while South Korean and Japanese builders had set prices at US$128M.
COSCO continues to fill available slots at Chinese yards as part of an expansive newbuilding programme, spanning tankers, bulk carriers and gas carriers. COSCO Shipping Energy Transportation – its subsidiary focused on crude/product tankers and LNG/LPG carriers – currently has 18 tankers under construction, with deliveries scheduled through 2028, according to information on its website. The company’s orderbook includes six VLCCs.
VLCC ordering remains moderate
VLCC newbuilding activity has remained relatively subdued so far in 2025. Data from Allied Shipbroking indicates only four VLCCs, totalling 1.2M dwt, have been added to the global orderbook to date. By contrast, 72 VLCCs totaling 22.1M dwt were ordered throughout 2024.
Among the few notable deals this year, Evangelos Marinakis-led Capital Maritime has reportedly placed an order for two VLCCs at Hanwha Ocean. In addition, Japan’s Idemitsu Tanker disclosed in late April it had ordered two methanol dual-fuel VLCCs at a domestic shipyard, with deliveries scheduled for 2028 and 2029.
Xclusiv Shipbrokers also noted in its latest monthly report that from January to April, 60 tankers were ordered across all segments. The tanker orderbook now stands at 14.6% of the active fleet in dwt terms, up from 9.6% in the same period last year.
Source: Riviera
