Chinese Vessel Orders Shoot Beyond $123B, Veson Nautical Finds
Veson Nautical, a provider of maritime commercial management and trading software solutions, has reported that the Chinese newbuilding vessel orderbook has topped $123 billion in 2024, with container ships making around 38% of total vessel orders.
Using VesselsValue data, Veson Nautical has summarized the Chinese orderbook by top Chinese ordering companies and insight into the ships currently being built at Chinese yards.
Of the top Chinese companies ordering vessels last year, China Merchants Shipping ranks first, with contracts agreed for 28 new vessels, worth $4.4 billion. This investment is mainly in the Tanker and LNG sectors, which each accounted for a share of around 33%, but also included new orders for bulkers and vehicle carriers.
(Credit: Vesson Nautical)
In second place with a spend of $3.06 billion is COSCO Shipping Lines with 18 New Panamax Container vessel orders ranging from 13,400- 14,000 TEU.
Ranking third is COSCO Shipping Development, who ordered 20 Bulkers last year, ranging from the Ultramax to the Kamsarmax sub sectors and valued at $929 million.
COSCO Shipping Bulk ranks fourth, spending $822 million on 10 new vessels including 8x Newcastlemax and 2x ore carriers, scheduled to be delivered between 2026-2028.
According to Veson Nautical, newbuilding prices are at the highest levels since 2009 due to high steel prices, lack of yard availability and demand. The supply and demand imbalance caused by the red sea crisis boosted sentiment and expectations for high earnings. This triggered owners to place orders across the Container, Tanker and LNG sectors.
Tankers Emerge as Top Ordered Vessel-Type at Chinese Yards
Tankers were the most popular vessel type ordered at Chinese yards in 2024 with 526 new vessels ordered, valued at $27.4 billion. Throughout 2024, tanker newbuilding prices were at the highest levels since 2009 due to high steel prices, lack of yard availability, and demand.
The supply and demand imbalance caused by the Red Sea crisis boosted sentiment and expectations for high earnings. This triggered owners to place orders across the key sectors like tankers, bulkers, and containers.
(Credit: Vesson Nautical)
In second place was the bulker sector with 430 new vessels ordered, worth $17.7 billion. Ranking third in terms of the number of vessels is the container sector, with 298 new orders placed. However, the value of these orders far exceeds any other sector, worth $46 billion - this comes as values for this sector saw significant gains over the past year, across all sub sectors and size ranges.
However, container newbuildings rose the least, making them appealing investments despite the time lag. For example, values for Post Panamax newbuildings of 7,000 TEU rose by 14.45% from $101.99 million to $116.73 million.
In contrast 20 YO Post Panamaxes rose by as much as 114.99% year-on-year from $20.62 million to $44.33 million.