Beijing – Perth – Shanghai – Mombasa | July 2, 2025
In a strategic leap toward maritime decarbonisation, mining titan BHP has signed five-year time charter agreements with COSCO Shipping Bulk for two ammonia dual-fuel Newcastlemax bulk carriers, positioning itself as a global leader in green dry bulk logistics. The vessels, due for delivery in 2028, will serve long-haul iron ore routes between Western Australia and Northeast Asia, and will be among the first bulk carriers in commercial operation powered predominantly by ammonia.
Expert Commentary: Eng. Daniel Esilaba, Marine Surveyor and Managing Director, Observater Surveys & Services Ltd.
As part of our extended coverage, All in Maritime News sought technical insight from Eng. Daniel Esilaba, a leading figure in African maritime engineering and vessel inspection services.
“This move by BHP and COSCO isn’t just a win for emissions—it’s a full-scale demonstration that alternative fuel pathways for dry bulk are maturing rapidly,” Eng. Daniel said from Observater’s Mombasa headquarters.
“Ammonia presents very real safety and handling challenges, especially for bulk carriers not traditionally equipped with high-hazard fuel systems. But what stands out here is the investment in the full ecosystem—vessels, bunkering, crew readiness, and port infrastructure. That’s what makes this credible.”
He emphasized the ripple effects for emerging markets:
“For Africa’s dry bulk exporters—from mineral producers to agri-bulk terminals—this signals the future. Charterers will increasingly prefer vessels aligned with ESG benchmarks. If East Africa wants to remain competitive in global trade corridors, we must begin preparing port reception facilities and compliance frameworks for alternative fuels now.”
The Technical & Commercial Milestone
The ammonia-fuelled Newcastlemax ships, each approximately 210,000 DWT, will be equipped with dual-fuel engines capable of operating on conventional marine fuels and ammonia. When operated on green ammonia, these vessels are expected to cut greenhouse gas emissions per voyage by between 50% and 95%, depending on fuel sourcing, voyage profile, and engine mode.
Why It Matters for the Global Fleet
With over 1,600 Capesize and Newcastlemax vessels in service globally, this pilot represents a template for how the dry bulk fleet can evolve. Historically, dry bulkers have lagged behind tankers and container vessels in adopting alternative propulsion systems due to tight margins and minimal downtime tolerance. BHP’s engagement shifts that paradigm.
COSCO’s Role and Fuel Logistics
COSCO Shipping Bulk, one of the world’s largest dry bulk operators, is overseeing vessel construction and operation. A parallel tender is underway to secure long-term supplies of green or blue ammonia, with consideration given to emerging fuel producers in Australia, the Middle East, and North Africa.
According to COSCO and BHP representatives, bunkering infrastructure is being scoped for Port Hedland, Dampier, Qingdao, and Ningbo, among others—forming a foundational corridor for green maritime logistics in the Asia–Pacific region.
Outlook: African Perspective
Eng. Daniel added a regional caution:
“This is a wake-up call for African port states. If we don’t keep pace with fuel infrastructure, training, and regulatory alignment, we risk becoming bottlenecks in a decarbonising supply chain. Observater is already consulting on readiness audits for ammonia and methanol compatibility across East African bulk terminals. We cannot afford to wait until these ships are already in service.”
All in Maritime News will continue to monitor this landmark charter’s progress—from newbuild milestones to bunkering trials—and assess its implications for the dry bulk sector’s green transition, including its relevance to Africa’s future role in sustainable maritime logistics.
For coverage on shipping innovation, logistics transformation, and marine energy transition, stay with All in Maritime News.
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