China Merchants Energy Shipping (CMES) has signed long-term charter agreements for five multipurpose (MPP) newbuilds, locking in 422,500 deadweight tonnes (dwt) of additional general cargo capacity for deliveries across 2029 and 2030, according to Splash247.
Charter structure and key terms
Splash247 reported that CMES has firmed charters for three 84,500 dwt ships from CMB Financial Leasing and two 84,500 dwt ships from China Merchants Financial Leasing. The initial three-year charter period will cost around RMB721m ($107m), with CMES holding four further three-year extension options. The contract also includes purchase options at the end of each charter period, based on the ships' book values.
The deal was initially approved by the company's board in April and cleared by shareholders in May, and the latest filing confirms the charter contracts have now been signed, according to Splash247. Both lessors are related parties to CMES.
| Vessel group | Number of ships | Individual dwt | Total dwt | Lessor |
|---|---|---|---|---|
| 84,500 dwt MPP newbuilds | 3 | 84,500 | 253,500 | CMB Financial Leasing |
| 84,500 dwt MPP newbuilds | 2 | 84,500 | 169,000 | China Merchants Financial Leasing |
| Total | 5 | — | 422,500 | — |
Fleet renewal and existing MPP experience
CMES has earmarked the ships for the renewal and expansion of its general cargo fleet, with the larger multipurpose tonnage intended to lift carrying capacity across existing trades. — Splash247
The Shanghai-listed owner already operates smaller MPP newbuilds, Splash247 reported. In 2023, CMES ordered a pair of 62,000 dwt MPPs at an affiliated yard as part of a wider $508m fleet investment programme. The new five-vessel charter deal extends that fleet strategy with significantly larger tonnage — each 84,500 dwt unit compares with the 62,000 dwt vessels ordered in 2023.
Implications for shippers and forwarders
According to Splash247, the five newbuilds are intended to lift carrying capacity across CMES's existing general cargo trades. For freight forwarders, 3PLs and shippers using multipurpose tonnage, the deal adds a significant block of capacity on a long-term charter basis, with deliveries phased across 2029 and 2030. The charter structure — three-year initial term, four three-year extension options and purchase options at book value — allows CMES to lock in capacity now while retaining flexibility on the vessels' long-term deployment.
According to Splash247, both lessors — CMB Financial Leasing and China Merchants Financial Leasing — are related parties to CMES. The report does not disclose charter rates beyond the aggregate RMB721m ($107m) for the initial three-year period.
Watch list
- Delivery schedule of the five 84,500 dwt MPPs across 2029 and 2030.
- CMES's decisions on the four three-year extension options and the purchase options at the end of each charter period.
- Further related-party charter transactions, given both lessors are related parties.
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