State-owned shipping giant China Merchants Ship Secures another heavyweight order with its “long-time partner.”

Recently, the China Merchants Group’s Electronic Tendering and Procurement Trading Platform published a notice of direct procurement for the construction of 10 vessels by ASSOCIATED MARITIME COMPANY (HONG KONG) LIMITED. Very Large Crude Carrier Dalian Shipbuilding Industry Group Co., Ltd. is proposed to be awarded the contract as the invited supplier.

These 10 VLCCs will be delivered and enter service sequentially on March 31, 2028; December 31, 2028; April 30, 2029; July 31, 2029; September 30, 2029; November 30, 2029; December 31, 2029; February 28, 2030; April 30, 2030; and June 30, 2030.

According to reports, this newbuild fleet will be powered by conventional fuels and equipped with desulfurization systems. While the construction cost of the vessels has not yet been disclosed, industry consensus is that, as a long-term customer of Dalian Shipbuilding, China Merchants Ship will secure a preferential pricing arrangement for this order, with an estimated unit price of approximately US$125 million. Based on this estimate, the total value of the 10 vessels would amount to US$1.25 billion, equivalent to roughly RMB 8.627 billion.

For reference, Clarkson’s data show that the current price for a newbuild 315,000–320,000-dwt conventional-fuel VLCC is approximately US$128 million, unchanged from the same period last year.

According to sources, if this order is ultimately finalized, Dalian Shipbuilding is likely to team up with its subsidiary, Dalian Shipbuilding Tianjin, to build this batch of VLCCs.

According to available information, Dalian Shipbuilding is a key strategic partner of China Merchants Ship, with the two parties maintaining a close cooperative relationship and achieving substantial results on multiple projects, including 300,000-dwt VLCCs, 110,000-dwt crude oil tankers, and 175,000-cubic-meter LNG carriers. Since 2007, Dalian Shipbuilding’s main shipyard has secured orders for approximately 60 vessels of various types for China Merchants Ship.

In 2024, China Merchants Shipbuilding ordered eight VLCCs from Dalian Shipbuilding, five of which are ammonia-ready. At the time, the estimated construction cost for each vessel was US$123–125 million. These eight VLCCs are scheduled for delivery between 2027 and 2028. At the end of last year, China Merchants Shipbuilding made its debut in the shuttle tanker market by placing an order with Dalian Shipbuilding for one plus one 154,000-dwt DP2 Suezmax shuttle tankers equipped with dynamic positioning capability. DPST ).

At the beginning of this year, newbuilding orders for large crude oil tankers, led by VLCCs, surged. According to Clarkson’s data, VLCC newbuild orders reached 17 in January and further climbed to 30 in February, marking the second-highest monthly total on record—second only to the 34 vessels ordered in March 2006.

VLCCs are also a traditional strength of Dalian Shipbuilding. As the shipyard that delivered China’s first VLCC, Dalian Shipbuilding has to date delivered more than 120 VLCCs to domestic and international shipowners, firmly maintaining its position as the leading Chinese shipyard in terms of VLCC deliveries. A order from China Merchants Ship is poised to become Dalian Shipbuilding’s first VLCC order this year.

According to available information, China Merchants Ship is a specialized shipping company focused on both international and domestic cargo transportation. Its core business segments include oil product transport, gas transport, dry bulk transport, ro-ro transport, and container transport. The company operates a world-class fleet of very large crude carriers (VLCCs) and ultra-large ore carriers (VLOCs), a domestically leading liquefied natural gas (LNG) fleet and a ro-ro fleet, as well as a premier container fleet in the Asia-Pacific region. Currently, China Merchants Ship manages more than 370 vessels, including those on order, with a total carrying capacity exceeding 52 million deadweight tons, placing it among the largest fleets globally. Notably, its VLCC and VLOC fleets are among the largest in the world; its LNG fleet has rapidly established significant influence on the global stage; its ro-ro fleet is the domestic leader, with an annual vehicle-carrying capacity of over one million units; and its container fleet serves a network that covers China’s coastal ports and major ports across the Asia-Pacific region.

According to the annual report, as of December 31, 2025, China Merchants Ship’s fleet comprised 235 owned vessels with a total deadweight tonnage of 38.8459 million dwt, including 58 oil tankers (6 Aframax, 51 VLCCs, and 1 bunker tanker), 30 LNG carriers, and 98 bulk carriers (34 VLOCs, 16 Capesize vessels, and 2… Kamsarmax type , 6 Panamax vessels, 20 Ultramax vessels, 10 Supramax vessels, and 10 Handy-size vessels), as well as 7 general cargo ships, Roll-on/roll-off ship The company operates 23 vessels, including 19 container ships, and has 69 chartered-in vessels, with a combined deadweight tonnage of 4.6514 million. Meanwhile, China Merchants Ship also holds orders for 64 additional vessels, totaling 7.8802 million deadweight tons, ensuring that its overall fleet capacity continues to rank among the top internationally.

In 2025, China Merchants Ship achieved operating revenue of RMB 28.177 billion, primarily derived from freight and vessel chartering income. Revenue by business segment was as follows: tanker transportation RMB 10.289 billion, bulk carrier transportation RMB 8.769 billion, container transportation RMB 6.149 billion, Ro-Ro transportation RMB 1.690 billion, and LNG transportation RMB 0.055 billion, representing a year-on-year increase of 9.22% in total operating revenue. Total profit amounted to RMB 6.874 billion, up 15.49% year on year; net profit attributable to shareholders of the listed company reached RMB 6.012 billion, an increase of 17.71%; and net profit attributable to shareholders of the listed company, excluding non-recurring items, stood at RMB 5.024 billion, up 0.18%.

In 2026, China Merchants Ship is expected to take delivery of 28 newbuild vessels, including two oil tankers from Haihong Hong Kong, two bulk carriers from Hong Kong Minghua, 14 LNG carriers from China Merchants Gas Transport, four Ro-Ro vessels from China Merchants Ro-Ro, one multi-purpose vessel from Shanghai Minghua, and five LNG carriers from CLNG. This marks the beginning of an accelerated phase in the company’s fleet renewal and development.

According to public media reports