Photo Credit: MarineTraffic
Shandong Marine Orders 10 Methanol Dual-Fuel VLOCs in $1.3 Billion Fleet Expansion
Shandong Marine Group, a state-owned Chinese shipping company, has signed a significant agreement with Qingdao Beihai Shipbuilding for the construction of ten ultra-large ore carriers (VLOCs), each with a capacity of 325,000 deadweight tons (dwt). The total value of this deal is estimated to be around $1.3 billion, marking one of the most substantial green fleet expansions in China's bulk shipping sector.
This latest contract represents the third and largest phase of Shandong Marine’s GuaibaMax VLOC fleet project. Prior to this, the company ordered four ships in December 2023 and two more in September 2024. Including these latest orders, Shandong Marine’s fleet under construction now totals 16 vessels. An additional two ships are on order for Winning International Group, bringing Qingdao Beihai’s GuaibaMax series to 18 vessels in total.
The new VLOCs are designed to support the long-haul transport of iron ore, primarily between Brazil and China. Each vessel will measure approximately 340 meters in length and 62 meters in width. The ships will be classed by DNV and China Classification Society (CCS), and will feature methanol dual-fuel capabilities, scrubbers, exhaust gas recirculation systems, rotor sails, shore power interfaces, shaft generators, and variable frequency drives. These features will ensure compliance with IMO Tier III and EEDI Phase III environmental standards.
When operating on methanol, the vessels are expected to reduce carbon dioxide emissions by approximately 86.5 percent, nitrogen oxide emissions by 60 percent, and sulfur oxide emissions by 99 percent compared to conventional fuels. This makes them among the most environmentally advanced bulk carriers in their class.
The investment is part of a broader strategy by Shandong Marine and the Shandong provincial government to expand green maritime infrastructure and align with China’s national decarbonization goals. The vessels will support bulk trade through key regional ports such as Qingdao, Yantai, and Rizhao, which are central hubs for iron ore imports and dry bulk logistics.
This fleet expansion enhances China's ability to control its iron ore shipping capacity through domestically owned and operated vessels. It also supports port infrastructure development in Shandong’s Blue Economy Zone and reflects a growing commitment to sustainable shipping practices.
In summary, Shandong Marine’s $1.3 billion order for methanol dual-fuel VLOCs represents a significant leap forward in low-emission shipping. These advanced ore carriers will not only strengthen China’s maritime logistics chain but also set a new benchmark for environmentally responsible bulk transportation.
