Chinese shipping major, Cosco Shipping Holdings has signed an agreement with affiliate shipbuilder Cosco Shipping Heavy Industry Yangzhou for the construction of ten containerships.
On 15 July 2021, Cosco sealed the deal with the shipyard splashing out a total of $1.496 billion on ten new vessels.
According to the agreement, the company bought six 14,092 TEU boxships for $876 million.
Moreover, Cosco spent $620 million on four 16,180 TEU containerships.
The 14,092 TEU vessels are scheduled for delivery between December 2023 to September 2024, while the 16,180 TEU ships are planned to be delivered from June 2025 to December 2025.
The financing will be managed through five installments in accordance with the ship construction progress arranged in the agreement, according to Cosco.
The company plans to finance the deal with 40% of internal resources, while 60% will be bank borrowings.
World Maritime News report that since the beginning of the year, the Chinese shipping giant posted a record profit jump. Among the seven largest shipping lines, Cosco recorded “third highest profit of 600-700 USD/TEU,” according to Sea Intelligence’s latest report.