China’s CSC Phoenix has failed to negotiate new charter contracts for a total of 13 bulkers with its former parent Sinotrans & CSC and will return the vessels when the contracts expire on June 30.
CSC Phoenix had chartered in 15 bulkers from Sinotrans & CSC last year and it had been actively negotiating to extend the charters to maintain its current operations and profitability.
Following the return of the vessels, CSC Phoenix’s fleet will be downsized to four self-owned vessels and two chartered vessels with total capacity of around 175,000 dwt.
“The company will seek support from the shareholders and actively taking measures to solve the current operational issues,” CSC Phoenix said in a release.
Earlier this month CSC Phoenix acquired two 2002-built secondhand handymax bulkers, the Astra and the Ocean Treasure, which are expected to be delivered to the company before June 20.
Last year, Tianjin Shunhang Shipping, the controlling shareholder of CSC Phoenix, failed in an attempt to sell the company as it was seeking an exit from the company.