Maritime Industry Briefing: COSCO's $1.1bn Newcastlemax Order and Houthi Red Sea Toll Proposal

## COSCO Lines Up 15 Newcastlemaxes in $1.1bn Leasing Push COSCO Shipping Development has approved orders for 15 newcastlemax bulk carriers valued at RMB7.92bn ($1.1bn), marking one of the more significant dry bulk commitments seen in recent months, according to Splash247. The 15 vessels, each measuring 210,000 dwt, will be distributed across two Chinese yards. Shanghai Waigaoqiao Shipbuilding will construct ten of the newcastlemaxes, with the remaining five contracted to Nantong Xiangyu Shipyard. The order forms part of COSCO Shipping Development's broader strategy to expand its ship-leasing portfolio, reinforcing China's dominant position in both shipbuilding and vessel ownership within the dry bulk segment. Newcastlemax vessels — the largest bulk carriers capable of transiting Newcastle, Australia's major coal export terminal — are primarily deployed on long-haul iron ore and coal trades. The scale of this order signals continued confidence in demand for large dry bulk tonnage, even as the market navigates ongoing freight rate volatility. --- ## Houthis Weigh Toll Scheme for Red Sea Shipping In a development that could further complicate one of the world's most strategically critical waterways, Yemen's Houthi movement is reportedly considering the introduction of a formal toll system for commercial vessels transiting Bab el-Mandeb, Splash247 reports, citing regional officials speaking to Reuters. The proposal would effectively transform the Houthis' sustained campaign of missile and drone attacks on Red Sea shipping into a structured, revenue-generating operation, granting the Iran-aligned group de facto control over access to the southern Red Sea corridor. Bab el-Mandeb connects the Red Sea to the Gulf of Aden and serves as a critical chokepoint for global trade, with an estimated 10-15% of world trade passing through the strait under normal conditions. Since late 2023, Houthi attacks have forced numerous major shipping lines to reroute vessels around the Cape of Good Hope, significantly increasing voyage times and costs. A formalised toll regime would represent a significant escalation, raising complex questions around international maritime law, freedom of navigation, and the practical enforceability of any such scheme. Industry observers and insurers are likely to monitor developments closely, as any move toward institutionalised access fees would have far-reaching implications for freight rates, war risk premiums, and the broader security architecture of the region. Shipping companies and flag states have yet to formally respond to the reported proposal.