China’s COSCO Group is consolidating its three dry bulk freight companies into one firm following a sharp downturn in the market that forced the country’s top shipping conglomerate to halt payments to ship-owners, a company official said on Thursday.

The initial process of restructuring COSCO Bulk Carrier, COSCO Hong Kong Shipping and Qingdao Ocean Shipping into one company is already underway, but it has yet to be decided where the new firm will be based and who will manage it, the official told Reuters.

The three units together operate more than 400 vessels, making COSCO, parent of listed firm China Cosco Holdings Co Ltd (601919.SS) (1919.HK), the world’s largest dry bulk company.

“For the three companies, they are right now willing to be restructured,” said the COSCO official, who declined to be named as he was not authorized to speak to the media on the issue.

“It is a very good time for us to restructure so we can give one voice to our clients to bargain with them.”

COSCO has sought better terms for lease contracts signed during the peak of the market in 2008, but its decision to stop payments to several shipowners in recent weeks has threatened to taint its reputation in the international shipping community.

It has reached a new deal with Greece-based DryShips Inc (DRYS.O) this week, although the terms were not disclosed.

“I think it is a very right decision for us to take some pains right now, to bite our nails right now and to prepare for the next two or three years and wait for the market to be stable and rebound,” the COSCO official said.