Cosco disposes of 14 vessels

Cosco disposes of 14 vessels

Shanghai: Chinese shipping giant Cosco has announced that it has sold 13 bulkers and one containership with a total capacity of 924,700 dwt for scrapping as part of its fleet optimisation plan.

The total disposal price of the vessels is RMB211m ($33.9m). Cosco said the company will suffer an RMB72m ($11.5m) loss in total from the disposal.

Cosco scrapped five containerships and three bulk carriers in January.

Cosco reported a net profit of RMB363m ($58.4m) for the year of 2014, a year-on-year surge of 54%.

Cosco has recently made plans to order a series of giant 19,000 teu ships – money for this acquisition is being made available, sources at Cosco tell Splash, thanks to the firm’s commitment to scrap older ships as per Beijing’s guidelines to slim down the nation’s bloated shipping structure.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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