Asia/Pacific News
Cosco Orders 12 LNG Dual-Fuel Boxships in $2.7 Billion Deal
Cosco Shipping has placed an order for 12 LNG dual-fuel container ships worth $2.69 billion as it looks to add new capacity to its fleet.
The ships will be built by Shanghai Waigaoqiao Shipbuilding at a price of $224 million each, the firm said in a stock filing on Monday.
The 21,700-TEU vessels fall within the 22,000-TEU class and are due for delivery between 2028 and 2030.
Cosco said the new ships will add capacity on major international services, including routes between the Far East and Northwest Europe.
The additional vessels will also allow the company to move existing ships to emerging and regional markets through capacity cascading.
The new vessels will be fitted with LNG dual-fuel engines, capable of running on LNG and conventional marine fuels.
The company expects the vessels to help meet demand from customers looking for greener supply chains while supporting the expansion of its container shipping business.
Cosco said it expects to finance up to 70% of each ship’s cost through external financing, with the remainder funded from its own resources. It added that its operating cash flow and relatively low debt levels give it the flexibility to manage the investment.
The company had placed another order for 12 LNG-capable container ships in January.
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| VLSFO | MGO | |||
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| $/mt | +/- | $/mt | +/- | |
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| Fujairah | 963.50 | 12.50 | 1666.50 | 19.50 |
| APAC Average | 999.00 | 0.00 | 1492.50 | 1.50 |
| Global 20 Ports Average | 876.00 | 6.00 | 1520.50 | 13.50 |
| Global 4 Ports Average | 814.00 | 10.00 | 1433.50 | 18.00 |
| Global Average Bunker Price | 935.00 | 3.00 | 1594.00 | 14.00 |
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