[310117.EN.SEA] Cosco Sells Eight Containerships For US$30.8 Million Scrap Value

AS part of its integration with China Shipping (CSCL), Cosco Shipping Holdings Co, Ltd, a subsidiary of state-run shipping line China Cosco Shipping Corp, has sold for CNY212 million (US$30.8 million) eight containerships for scrap, resulting in a book loss of CNY638 million.

The ships had a combined capacity of 32,574 TEU, according to ocean carrier schedule and capacity database BlueWater Reporting. Most of the vessels are built in the late 1990s and early 2000s with the youngest being 15 years old. One of the ships is 3,400 TEU, two are 542 TEU and the other five are 5,618 TEU.

The 2001-built 542-TEU Cosco Ran 2001-built 542-TEU Cosco Sakura were previously owned by Cosco (Cayman) Mercury Co, and the other six were previously owned by Shanghai Pan Asia Shipping Co, also a subsidiary of China Cosco Shipping.

The company said in a filing with the Hong Kong stock exchange the disposal of the ships would reduce the average age of its fleet as well as reduce its fuel consumption and environmental impact.

"The board considers that the decommissioning of the vessels is conducive to enhancing the overall operational competitiveness of the shipping fleet of the company and is in the interest of the company and the shareholders as a whole," it said.

Source : HKSG.