Chinese domestic dry bulk shipping company CSC Phoenix is pessimistic on the development of the company due to the uncertain outlook of the company’s future operations.
In the company’s latest financial report, CSC Phoenix said it is difficult for the company to expand its scale through internal efforts due to its small net asset scale. Additionally, the company has been unable to identify its future strategy and has to merely seek survival in the current asset framework due to the unclear arrangement between the current controlling shareholder Shunhang Shipping and its former parent company Sinotrans & CSC.
Sinotrans & CSC sold its entire controlling stake in CSC Phoenix to Tianjin Shunhang Shipping in 2015 and as part of the deal Tianjin Shunhang promised to transfer all the shipping assets and employees of CSC Phoenix back to Sinotrans & CSC for free after the company completes a restructuring.
However, Shunhang Shipping failed in an attempt to restructure CSC Phoenix into a dredging company and couldn’t conclude a deal to sell its shares in CSC Phoenix, which triggered a dispute between the company and Sinotrans & CSC.
In June, Sinotrans & CSC refused to extend the charter contracts of 13 bulkers with CSC Phoenix and a large number of employees resigned from CSC Phoenix and moved back to Sinotrans & CSC.
According to CSC Phoenix, the two recently bought 2002-built bulk carrier Astra and Ocean Treasure have joined the company’s fleet and it is searching for more capacities to solve the capacity shortage issue.