Report: COSCO plans to order 20 new boxships

In other news, China COSCO Shipping’s tanker unit, COSCO Shipping Energy Transportation, will order 14 tankers, according to a report from maritime news outlet Splash 24/7.    COSCO Shipping Holdings Co., Ltd. said it would raise 12.9 billion Chinese yuan renminbi (U.S. $2 billion) through a share sale to build 20 containerships as it returned to a profit for the first nine months of 2017, according to a report from Reuters.
   COSCO Shipping Holdings recorded a profit of RMB 2.7 billion for the first nine months of the year, up from a loss of RMB 9.2 billion for the corresponding 2016 period.
   The company will undertake a private placement to fund the construction of the containerships, six of which will be able to carry over 21,000 TEUs.
   Last Thursday, the company suspended trading in its mainland-listed shares, with trading in its shares resuming today, according to a filing with the Shanghai Stock Exchange.
   Back in September, CMA CGM of France confirmed an order for up to nine containerships of 22,000 TEUs – six firm orders with an option for three more – slated for delivery from the end of 2019. CMA CGM said the order was placed to further reduce unit transport costs, particularly on the Asia-Europe routes.
   Shortly after news broke about CMA CGM ordering more containerships, Switzerland-based Mediterranean Shipping Co. (MSC) reportedly confirmed an order for 11, 22,000-TEU vessels in September. An MSC spokesperson told maritime news outlet Splash 24/7 that the newly ordered vessels are being viewed as replacements for older charter vessels expected to be retired in the coming years.
   In other news, China COSCO Shipping’s tanker unit, COSCO Shipping Energy Transportation (CSET), will order four, 320,000-deadweight-ton (dwt) very large crude carriers (VLCCs) and three, 160,000 dwt crude tankers at Dalian Shipbuilding Industry; along with five, 110,000 dwt tankers and two, 65,000 dwt tankers at CSSC Offshore & Marine Engineering, Splash 24/7 reported today.
   CSET has also approved a proposal to acquire 50 percent stakes in four liquefied natural gas (LNG) carriers in Russia’s Yamal LNG project from Mitsui O.S.K. Lines. The company will issue new shares to specific investors, including China COSCO Shipping, in order to raise RMB 5.4 billion, and all proceeds will be used for the investment of new ships, according to the report.
   Currently, CSET is equipped with a fleet of 117 tankers, and has another 11 newbuildings under construction at DSIC and CSSC Offshore & Marine Engineering.