Hudong-Zhonghua Shipbuilding has won a newbuilding order from Cosco Shipping Lines for a series of neo-panamax container ships worth more than $900m.
With the ink hardly dry on a deal for a series of 13,600-teu newbuildings from Canada’s Seaspan Corp, the Chinese yard has signed a deal with Cosco Lines for six similar-size boxships.
According to Chinese news agencies, the sextet will be powered by conventional fuel. They are scheduled for delivery in 2027.
This is the second renminbi deal that Hudong-Zhonghua has signed in 10 days.
On 18 October, the six-ship Seaspan deal was also under RMB settlement.
Domestic news agencies said the latest Cosco Lines contract shows the “power of China’s maritime power” as it constitutes Chinese owner, shipyard, classification society and currency.
The price has yet to emerge, but shipbuilding brokers said Cosco Shipping’s newbuildings will cost the same as Seaspan’s — more than $150m each.
The design is independently developed by Hudong-Zhonghua.
With a length of about 336 metres and a width of 51 metres, the boxships have a maximum loading capacity of 14,096 teu and can carry 2,000 reefer containers.
They will feature shaft generators and be fitted with energy-saving devices.
Last week, Seaspan ordered a series of scrubber-fitted newbuildings against 15-year charter contracts valued at CNY 11.2bn ($1.57bn).
Hong Kong-based Orient Overseas Container Line, part of the China Cosco Shipping empire, is scheduled to take delivery of one vessel in late 2026, two in early 2027 and two in early 2028.
It intends to deploy them in emerging markets.
Local news reported that there is an increase in shipbuilding deals being concluded in RMB, reflecting the improvement of the Chinese currency in the international market.
But Banchero Costa analyst Ralph Leszczynski said a renminbi newbuilding contract is extremely unusual and thinks the order is linked to financing from Chinese financial companies, domestic shipowners or long-term charters to Chinese companies.
He said the role of the RMB as an international currency remains very small.
Leszczynski believes Chinese shipyards would benefit from renminbi-based newbuilding deals, as all their costs — salaries, steel and bank loans — are paid out in local currency.
Cosco Lines is the fourth-largest liner company, according to Alphaliner. It has a fleet of 507 vessels of about 3.3m teu.
Cosco Lines plans to deploy some of the new 13,600-teu boxships on the Far East-Mexico Express trade route and the rest to Europe-South America West trade.
Cosco Lines and Seaspan’s newbuildings are the fourth and third container ship deals that Hudong-Zhonghua has signed this year.
The other two were for a scrubber-fitted 14,170-teu quartet for Peter Dohle and Pacific International Lines’ five LNG dual-fuel 13,000-teu newbuildings.
