In a significant move indicative of broader industry trends, Cosco Shipping has made a high-profile order for six large container ships from Hudong-Zhonghua Shipbuilding through its subsidiary, Cosco Shipping Container Lines. This action follows closely on the heels of a similar agreement just ten days earlier when Seaspan Corp also placed an order for six vessels of the same type from the same shipyard. Notably, both deals will be settled in Chinese yuan (RMB), marking a considerable departure from the customary use of US dollars in international shipping contracts. Hudong-Zhonghua Shipbuilding pointed out that adopting the yuan mitigates exchange rate risks, enhances profitability for Chinese shipbuilders, and bolsters their market competitiveness.
The container ships, designed by Hudong-Zhonghua, boast a significant capacity of 13,600 TEU. These vessels will measure 336 meters in length and 51 meters in width, capable of accommodating up to 2,000 reefer containers, which are essential for transporting perishable goods. Construction of the first ship for Cosco is set to commence in November 2025, with all six ships scheduled for delivery by 2027. This latest order rounds up Hudong-Zhonghua’s total to 21 large container ships ordered in four separate batches this year.
These new contracts underscore the growing acceptance and stability of the RMB in the global shipping market and potentially signal a shift towards currency diversification in international trade. By reducing reliance on the US dollar, Chinese shipbuilders are positioning themselves to mitigate financial risks and increase their competitive advantage. This strategic decision not only highlights the economic benefits but also reflects the changing dynamics in global trade practices, reinforcing China’s prominent role in the maritime industry.
In summary, Cosco Shipping’s recent order of six large container ships, finalized in Chinese yuan, has not only impacted the shipping industry but has also hinted at a broader trend towards the diversification of currencies in global trade. The culmination of these shipbuilding contracts has strengthened the strategic and economic standing of Chinese industry players, influencing the larger global market in profound ways.
