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World’s largest shipping line unveiled in Shanghai

Shipping has a new acronym. COSCOCS is the abbreviated name for the brand new China Cosco Shipping Corporation – the world’s largest shipping line.

Xu Lirong, the chairman of the Cosco/China Shipping merged entity, told reporters at the firm’s unveiling this morning , that mergers are vital to withstand the downturn in the industry. Xu was speaking in Shanghai where the new company is now headquartered.

“The Baltic Dry Index has been hitting historical lows every day. This is the most difficult period that we are experiencing since the financial crisis,” Xu said.

“Our two firms had similar operations, we did not have many advantages in the various sectors we operate in and could not count on economies of scale…The merger is crucial to the development of both companies,” he added.

Online pricing portal VesselsValue.com shows the merged company has 830 owned vessels, twice as many as AP Moller Maersk and Mitsui OSK Lines combined.

Another Chinese shipping merger – between China Merchants and Sinotrans & CSC – is also underway as Beijing pursues efficiencies among state-run firms.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

    1. Dear Costas, as stated in the article it is the world’s largest shipping line. This means it includes all sectors, not just containers.

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