Cosco Shipping Lines is exploring a newbuilding order in Japan for the first time in two decades as it looks to contract a series of capesize bulkers.
Cosco Lines has approached several Japanese shipyards and is enquiring about slot availability for 180,000-dwt newbuildings, according to the Japan Maritime Daily (JMD).
Cosco Lines’ newbuilding enquiries have come as a surprise for the Japanese shipbuilding industry which has grown accustomed to the Chinese giant ordering domestically.
The last time Cosco Lines penned newbuildings in Japan was in 2004 when it contracted Universal Shipbuilding to build two VLCCs at $90m each.
The pair of crude oil tankers — the 300,000-dwt Cospearl Lake (built 2008) and Cosjade Lake (built 2009) — are still trading.
A Japanese shipping source confirmed that Cosco Lines is in contact with Japanese shipyards for a series of capesize bulker newbuildings.
“Cosco Lines is trying to find out if Japanese shipyards have early delivery slots,” he said. “It is still too early to say if it will order the ships here [in Japan].”
A broker in China said he is not surprised that companies such as Cosco Lines have approached the Japanese yards for large bulkers as the newbuilding price is said to be competitive with Chinese shipyards or even lower.
Chinese shipbuilders are said to be seeking about $70m for a conventional marine-fuel 180,000-dwt capesize ship and about $80m for newcastlemax bulker.
JMD reported that Cosco Lines may order at least 10 capesize bulker newbuildings if Japanese shipyards are able to deliver them between 2027 and 2028.
According to data from Clarksons, more than half of the global newbuildings orderbook is at Chinese shipyards.
The world’s largest shipbroker counted $191.2bn worth of vessels, running to 174.1m dwt at Chinese yards at the end of May.
This compares with 65.8m dwt, worth a combined $112.5bn, on order in South Korea and $28.7bn worth of ships, of a collective 37.2m dwt, in Japan.
Japan has several shipyards that are building large bulkers and they include Imabari Shipbuilding, Namura Shipbuilding, Japan Marine United and Koyagi Shipyard, which is owned by Oshima Shipbuilding.
In May, Cosco Lines was reported to have mapped out an enormous newbuildings plan that will see it ordering up to 120 vessels worth more than $4.5bn.
The state-owned outfit was said to be mulling 20 newcastlemax bulkers, 40 kamsarmax bulkers, and 30 pulp carriers/multipurpose (MPP) ships of 80,000 dwt. It is also looking at orders for VLOCs and asphalt tankers.
Cosco Lines was reported to have contacted several domestic shipyards and its subsidiary shipbuilding companies for the new vessels.
Brokers said shipyards under Cosco group stopped marketing their newbuildings slots earlier this year and are keeping the space for the parent company.
