Cosco Shipping Holdings Scraps Eight Boxships

COSCO Shipping Holdings announced the disposal of eight containerships with an aggregate tonnage of 409,914 dwt over the fourth quarter of 2016.

News ID: 71828

Date: 24 January 2017 - 10:57

According to MANA, the eight ships were sold off to different independent third party buyers to be scrapped for a total net consideration of Yuan212m ($30.9m).

Cosco Ran and Cosco Sakura were owned by the group's subsidiary Cosco (Cayman) Mercury Co Ltd while the other six vessels were owned by another unit Shanghai Pan Asia Shipping Company Ltd.

Although the group incurred a Yuan638m ($93.1m) net loss from the vessel disposals, it said the average age of its owned fleet has fallen, while the level of fuel savings and overall environmental sustainability has imporved.

"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.

China Cosco Holdings said in July last year that it received an approximately Yuan189m subsidy from controlling shareholder China Cosco Shipping Corporation Ltd , "for the decommissioning and upgrading of vessels".

The company scrapped four vessels in April this year, following the 14 ships dismantled in February and March.