Veson Nautical has examined the latest trends in China’s newbuilding orderbook, highlighting key players, vessel types, and the impact of rising prices in 2024.
Top Chinese companies regarding orders in 2024
Of the top Chinese companies ordering vessels last year, China Merchants Shipping ranks first, with contracts agreed for 28 new vessels—worth an impressive USD 4.4 billion. This investment is mainly in the Tanker and LNG sectors, each accounting for approximately 33% of the total, but also includes new orders for Bulkers and Vehicle Carriers.
COSCO Shipping Lines ranks second with a spend of USD 3.06 billion. The company placed 18 new Panamax Container vessel orders, ranging from 13,400-14,000 TEU.
COSCO Shipping Development comes in third place, with 20 orders for Bulker vessels, ranging from the Ultramax to the Kamsarmax sub-sectors, valued at USD 929 million.
In fourth place is COSCO Shipping Bulk, spending USD 822 million on 10 new vessels, including 8 Newcastlemax bulk carriers and 2 ore carriers, scheduled for delivery between 2026-2028.
China Shipbuilding Trading rounds out the top five, placing 22 new orders valued at USD 778 million. These include an en bloc order of 22 Panamax newbuildings of 80,000 DWT, set to be built at Chengxi Shipbuilding and delivered between 2027-2028.
Seacon Shipping Group also deserves an honorable mention, ranking second in terms of vessel numbers, with 26 new orders placed. This mainly includes Tanker newbuilding projects, valued at USD 738 million.
Impact of rising newbuilding prices
Newbuilding prices are at the highest levels since 2009, driven by high steel prices, limited yard availability, and increased demand. The supply and demand imbalance, exacerbated by the Red Sea crisis, has heightened sentiment and expectations for high earnings.
This has led to increased orders in the Container, Tanker, and LNG sectors.
Sector breakdown: Vessel orders in 2024
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Tankers: The most popular vessel type ordered at Chinese yards in 2024, with 526 new vessels ordered, valued at USD 27.4 billion.
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Bulkers: The Bulker sector comes in second, with 430 new vessels ordered, worth USD 17.7 billion.
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Containers: The Container sector ranks third in terms of the number of vessels, with 298 new orders placed. However, the value of these orders far exceeds any other sector, at USD 46 billion. This significant rise in container values over the past year spans all sub-sectors and size ranges.
Container newbuildings and investment appeal
Although Container newbuildings showed the least rise in orders, they are still viewed as appealing investments due to the time lag in returns. For example, values for Post-Panamax vessels of 7,000 TEU rose by approximately 14.45%, from USD 101.99 million to USD 116.73 million. In contrast, 20-year-old Post-Panamax vessels saw a dramatic rise of 114.99%, from USD 20.62 million to USD 44.33 million year-on-year, Veson Nautical concludes.
To remind, whilst China retains the top spot in terms of vessels numbers, it has also taken the lead for the most valuable fleet, overtaking Japan and amounting to USD 255 bn. The fact that China owns the most valuable Bulker and Container fleets at USD 68.4 bn and USD 63.5bn respectively, has contributed to their leading status, particularly as values for both sectors have firmed over the last year.
