Cosco Shipping Holdings has placed a US$2.2 billion order for 12 LNG dual-fuel containerships of 13,600 TEU, extending its fleet expansion programme, reported London's Lloyd's List.

The order was confirmed in a stock filing, with subsidiary Orient Overseas contracting Hudong-Zhonghua Shipbuilding and China Shipbuilding Trading. Deliveries are scheduled between late 2028 and early 2030.

The deal follows Cosco's January announcement of a US$2.7 billion order for 18 LNG dual-fuel ships of 18,000 TEU. The company stated that the latest order will strengthen its full-chain service capability and resilience against supply chain risks.

Cosco noted that geopolitical tensions and market volatility continue to challenge global shipping. The new vessels are designed to serve both trunk routes to Europe and the US, as well as regional ports linked to hubs such as Piraeus.

Analysts warn that the surge in newbuildings risks oversupply. Linerlytica co-founder Tan Hua Joo mentioned that carriers are unwilling to cede market share, while Mediterranean Shipping Co already has 138 ships on order totaling 2.4 million TEU.

Fearnley Securities added that liners appear prepared for oversupply, citing a 37 percent orderbook-to-fleet ratio and strong cash reserves. Cosco's first-quarter net profit fell nearly 50 percent to CNY5.88 billion (US$859 million) due to weaker freight rates.

The company reported that average China Export Containerized Freight Index levels dropped more than 16 percent year on year, while conflicts in the Middle East continue to pose significant challenges to shipping.