COSCO scraps five 3,400-TEU containerships

As part of its integration with fellow state-run ocean carrier China Shipping, COSCO Holdings sold the vessels Na Xi He, Bu Yi He, Yu Gu He, Ha Ni He, and Jing Po He for a total of 90 million yuan renminbi (U.S. $13.5 million).    China COSCO Holdings recently sold five 3,400-TEU capacity containerships for scrap, according to a statement from the company.
   The vessels – the Na Xi He, Bu Yi He, Yu Gu He, Ha Ni He, and Jing Po He – were sold for a total of 90 million yuan renminbi (U.S. $13.5 million), resulting in a total net loss of 341 million yuan renminbi (unaudited). Built in 1997, the ships were flagged in Panama and previously served for COSCO’s intra-Asia subsidiary, Shanghai Pan Asia Shipping Co. Ltd.
   The sale was part of an overall fleet optimization plan following COSCO’s merger with fellow state-run ocean carrier China Shipping earlier this year.
   COSCO said the scrapping of these vessels improved overall fleet fuel savings and reduced its 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,” the carrier said.
   Perhaps hinting at further fleet rationalization, COSCO added, “The company will keep its shareholders and potential investors informed of further development in connection with its plan to decommission aged vessels by way of further announcement(s) as and when appropriate or necessary.”
   Established in 2004, Shanghai Pan Asia Shipping operates 220 vessels with a total capacity of 136,000 TEUs on nearly 100 routes, according to its website. The company’s core businesses include the China-Japan line, Internal-Coastal line, and feeder lines on the Yangzi and Pearl rivers.