Ningbo Ocean bets $480m on LNG car carriers: what’s behind the gamble?
Chinese carrier seeks two 7,000-ceu LNG dual-fuel vessels under a 20-year leasing deal worth up to $480m.
China’s Ningbo Ocean Shipping has unveiled plans to expand its car carrier fleet through a long-term leasing agreement valued at up to $480 million. The proposal, disclosed in a filing to the Shanghai stock exchange, involves securing two 7,000-ceu vessels powered by liquefied natural gas (LNG) dual-fuel engines.
The company, a subsidiary of Ningbo-Zhoushan Port Group, has outlined a leasing period of up to 20 years but has not yet finalised critical details. No leasing partner has been chosen, and negotiations over financing terms, vessel specifications, and delivery schedules remain ongoing. The plan still requires approval from shareholders, with a vote set for October 26.
Recent expansion into car carrier trade: Ningbo Ocean
Ningbo Ocean’s move into the car carrier sector is a recent development. In June, the company chartered its first vessel in this segment, the Clean Star, a 7,000-ceu LNG dual-fuel carrier. The ship, constructed at China’s CIMC Raffles shipyard, operates under a two-year charter at a reported rate of $80,000 per day. Backed by Greek owner Atlas Maritime and Danish investment firm European Maritime Finance, the Clean Star began transporting Chinese-manufactured vehicles to Europe in August, with stops at ports such as Gioia Tauro in Italy and Barcelona in Spain.
Natural Gas
Traditionally focused on container and dry bulk shipping, Ningbo Ocean has steadily grown its fleet through newbuilding programmes at Chinese yards. The addition of these two new vessels, if approved, would mark a significant step in its efforts to strengthen its presence in the car carrier market.
Uncertainty and industry implications
While the leasing plan signals Ningbo Ocean’s ambition to scale up its car carrier operations, the proposal remains in its early stages. The company has not identified the shipbuilder or confirmed when the vessels would enter service. Industry observers will be monitoring the outcome of the shareholder vote, as the deal could reshape the company’s role in the global vehicle logistics chain.
The expansion also aligns with the strategic goals of Ningbo Ocean’s parent company, Ningbo-Zhoushan Port Group, which operates one of China’s largest port networks. A successful leasing agreement could enhance the group’s capacity to handle growing trade volumes between China and Europe, a key route for automotive exports.
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