Shanghai: China Shipping Development (CSD) announced its first half results yesterday. The company posted a net loss of RMB949m, almost double compared with the same period last year.
CSD said the situation of overcapacity in the shipping industry hasn’t improved, and the company is facing big pressure from the delivery of vessels.
The company expects to receive new capacity of 1.91m dwt in total in the second half of this year, including 1 VLCC and 20 bulk carriers. CSD said it is now actively negotiating with the shipyards to postpone the deliveries of some vessels in order to decrease relevant financial expenses.
CSD said it is also accelerating scrapping old vessels in the fleet. It will scrap 11 tankers with a total capacity of 485,000 dwt this year and next year. It will also scrap 28 old bulkers with a total capacity of 950,000 dwt step by step. [20/08/13]
