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China CSSC Holdings defied the overall market decline today after announcing a deal to construct 10 very large crude carriers (VLCCs) for China Merchants Energy Shipping, valued at approximately 8.6 billion Chinese yuan (around $1.2 billion). The company’s stock closed 1 percent higher at 30.84 yuan ($4.50), having gained more than 3 percent during the trading session. Broader stock markets, including major Shanghai and Shenzhen indexes, fell amid ongoing uncertainties related to the conflict in the Middle East. The Shanghai Composite Index dropped 0.8 percent. Meanwhile, China Merchants Energy Shipping’s shares declined 3.9 percent, closing at 16.36 yuan.
The vessels will be built by Dalian Shipbuilding Industry, a wholly owned subsidiary of the shipbuilder, with deliveries planned from 2028 through 2030. Both companies announced this yesterday. The project’s total value aligns with prior estimates, which ranged from 8 billion to 9 billion yuan.
The Chinese shipping firm confirmed that it signed the shipbuilding contract on March 30 through its Hong Kong-based subsidiary. Earlier disclosures from the shipbuilder indicated that the order was placed by a leading Chinese crude oil transportation company, though no specific client was named. The new VLCCs will feature Dalian Shipbuilding’s advanced, eco-friendly design that meets the latest international environmental standards. While the ships will initially operate on conventional fuel, they are designed with future upgrades in mind, allowing for the addition of dual-fuel propulsion systems.
As of the end of last year, the shipping company was the largest VLCC owner globally, with a fleet of 51 vessels totaling 15.8 million deadweight tons. In 2025, its tanker fleet moved 81.6 million tons of cargo and generated revenue of approximately 10.3 billion yuan ($1.5 billion), making up nearly 37 percent of its total revenue for that year. Additionally, the firm has five VLCCs currently under construction, with a combined deadweight capacity of 1.5 million tons.
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