China Merchants Energy Shipping (CMES) has approved a 10-vessel newbuilding order that will add capacity across tanker, container, and dry bulk segments, according to Splash247. The order signals continued fleet expansion by one of China's most active state-backed shipowners, with implications for ocean freight capacity in the coming years.
Shanghai-listed CMES said its board approved the construction of five scrubber-fitted aframax tankers at CSSC Dalian Shipbuilding, with deliveries starting in 2029. Splash247 reported that the tankers are intended to renew and optimise the company's tanker fleet and support an aframax pooling scheme being developed with major international oil companies.
Container and Bulk Vessels
CMES is also moving on four 1,800 teu containerships and one 210,000 dwt newcastlemax bulker for delivery in 2028. These five vessels are set to be built by subsidiaries of China Merchants Shipbuilding Industry Group, a related-party entity controlled by China Merchants Group. The connected-party package carries an investment cap of RMB1.51bn (about $223m) and still requires shareholder approval, according to Splash247.
CMES stated that the feeder and bulker newbuildings are aimed at improving fleet structure, securing earlier delivery berths, and strengthening long-term profitability.
| Segment | Number | Capacity | Shipyard | Delivery Timeline |
|---|---|---|---|---|
| Aframax tanker (scrubber-fitted) | 5 | ~115,000 dwt each | CSSC Dalian Shipbuilding | Starting 2029 |
| Container feeder | 4 | 1,800 teu | China Merchants Shipbuilding Industry Group | 2028 |
| Newcastlemax bulker | 1 | 210,000 dwt | China Merchants Shipbuilding Industry Group | 2028 |
Earlier Orders and Fleet Expansion
The latest move adds another layer to one of China's busiest state-backed shipowning orderbooks. Earlier this year, Splash247 reported that CMES lined up 10 VLCCs at Dalian Shipbuilding in a deal worth around $1.25bn, with deliveries between 2028 and 2030. CMES has also been expanding its container exposure with an eight-ship boxship plan worth more than $550m, including four 8,200 teu methanol-ready vessels and four 1,800 teu ships.
Implications for Logistics Operators
For freight forwarders and ocean carriers, the order indicates that CMES is positioning for long-term growth across major shipping segments. The aframax pooling scheme could improve service reliability for crude oil shippers, while the new feeders may enhance regional container connectivity. However, the concentration of orders at Chinese shipyards, particularly at Dalian Shipbuilding and China Merchants Shipbuilding Industry Group, could tighten yard space and push out delivery slots for other operators. The $1.25bn VLCC order and the $550m+ container order already booked underscore the scale of CMES's renewal programme.
Watch List
- Shareholder approval for the connected-party newbuilding package is still pending and could affect timelines.
- Delivery schedules from 2028 to 2030 will gradually add capacity to the aframax, feeder, and bulker markets.
- Continued ordering by state-backed Chinese owners may further lengthen orderbooks and impact future spot rate expectations for tanker, container, and dry bulk freight.
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