China’s Shipowners Invest $123 Billion in Newbuilding Ship Orders in 2024
China’s shipowners poured $123 billion into newbuilding ship orders in 2024, with containerships making around 38% of total vessel orders, according to the latest report from maritime freight management solutions provider Veson Nautical.
Based on VesselsValue data, Veson examined the Chinese newbuilding orderbook from 2024 to provide insight into the country’s shipbuilding market.
The impressive $123 billion worth of new ship orders were recorded as newbuilding prices reached the highest levels since 2009 due to high steel prices, lack of yard availability, and demand, Veson found.
As explained, the supply and demand imbalance caused by the Red Sea crisis boosted sentiment and expectations for high earnings, prompting owners to place orders across the container, tanker, and LNG sectors.
Top Chinese Companies in New Vessel Orders
China Merchants Shipping ranked first on the list of Chinese companies ordering vessels last year, investing $4.4 billion in 28 new vessels. The orders were placed mainly in the tanker and LNG sector, with each accounting for a share of circa 33%, but also included bulkers and vehicle carriers.
COSCO Shipping Lines made it to the second place on the list with $3.06 billion worth of 18 new Panamax containerships ranging from 13,400 to 14,000 TEUs.
The third place was occupied by COSCO Shipping Development ordering 20 bulkers last year, ranging from the Ultramax to the Kamsarmax sub-sectors, and valued at $929 million.
COSCO Shipping Bulk ranked fourth, spending $822 million on 10 new vessels including 8 Newcastlemax and 2 ore carriers, scheduled to be delivered between 2026 and 2028.
China Shipbuilding Trading followed with 22 new orders last year, valued at $778 million with en bloc order of 22 Panamax newbuildings of 80,000 dwt, scheduled to be built at Chengxi Shipbuilding and delivered between 2027 and 2028.
Seacon Shipping Group also received an honorable mention, ranking second in terms of vessel numbers with 26 new orders placed, mainly tankers, valued at $738 million.
Vessel Types Ordered in 2024
When it comes to vessel type ordered at Chinese yards in 2024, tankers were the most popular with a total of 526 units worth $24.4 billion.
With 430 units valued at $17,7 billion, bulkers were the second most popular choice among Chinese shipowners.
Ranking third in terms of the number of vessels was the container sector with 298 new orders placed. However, the value of these orders far exceeds any other sector, worth $46 billion; coming amidst significant value gains for this sector over the past year, across all sub-sectors and size ranges, Veson’s report shows.