COSCO and Seaspan Place Large Orders Despite Threat of U.S. Port Fees
While the threat of U.S. port fees for Chinese-built ships continues to loom, it does not appear to have changed the orders of several major operators. Reports are indicating that Chinese shipyards booked billions of dollars in orders from independent charter owner and operator Seaspan as well as China’s COSCO while other orders however are going to the yards in South Korea.
Seaspan which works with many of the leading carriers financing and building ships for long-term charters has a long relationship with China’s shipbuilders. The group has been undertaking a multi-year expansion highlighting nearly 10 percent compound annual growth in capacity and a fleet now of around 200 vessels and 2.3 million TEU of capacity.
Alphaliner is reporting the group has signed a new construction contract with China’s Shanghai Waigaoqiao Shipbuilding, part of the China State Shipbuilding Corp., for six new vessels. No value was reported for the new shipbuilding agreement which is said to be for 13,600 TEU vessels for an undisclosed operator. Under the U.S. Trade Representative’s fee structure, the operator would pay the fees each time the ships call in a U.S. port.
China’s COSCO also disclosed that it is continuing its shipbuilder but as would be expected they are using domestic shipyards. The ships will be built for its Orient Overseas Container Line with the order reported to be valued at over $3 billion. A total of 14 vessels each with a capacity of 18,500 TEU will be built and delivered between the third quarter of 2028 and 2029. The work is going to COSCO-owned shipyards with the project split between Nantong Cosco KHI Ship Engineering (NACKS) and Dalian Cosco KHI Ship Engineering (DACKS).
The new vessels for OOCL are methanol dual-fuel continuing a pattern the company started a few years ago when it ordered large containerships to be split between COSCO and OOCL. Alphaliner reports that COSCO has 50 containerships on order to be split between its two brands and it is also expanding its bulker and tanker fleets.
South Korea’s shipyards are reportedly also experiencing strong interest and a new competitive position in the competition for orders with their Chinese rivals. Speculation centers on some owners responding to the threat of the U.S. port fees. The Korean media for example reports that Chinese yards have typically dominated the feeder ship market but now the Korean yards are reporting increasing orders in the sector.
HD Hyundai Heavy Industries reports that it has secured a total of 22 orders recently valued at approximately $1.8 billion for smaller containerships. One of the orders was for 18 feeders valued at $1.275 billion with the work split between the group’s Mipo and Samho yards. The vessels will be delivered by the second half of 2028.
As of this week, the HD Hyundai group is reporting that it received orders o far in 2025 for 49 vessels valued at $6.16 billion. That is 34 percent of the group’s 2025 goal for orders valued at $18 billion.
Samsung Heavy Industries last week also announced that it had won an order for two containerships valued at approximately $395 million. Year-to-date Samsing reports it has received orders for 18 vessels totaling an estimated $2.6 billion.
A shipbuilding official told Korea’s Chosun Daily that the U.S. port fees are helping to level the playing field with the Chinese yards. Traditionally, Chinese shipbuilders have had the advantage of lower costs leading Korean yards to mostly focus on higher-value vessels including the LNG sector and the emerging market for ammonia carriers.