Cosco Shipping to spend US$1.8b on 16 box ships: Splash report
CHINA's Cosco Shipping is reported to be in the market for sixteen box ships worth US$1
CHINA's Cosco Shipping is reported to be in the market for sixteen box ships worth US$1.8 billion that will help boost the liner's fleet with an additional 304,000 TEU.
According to the Singapore's Splash 247, Cosco Shipping 'is already in discussions for a record, bumper new round of orders that will rock the liner community, acutely concerned about the delicate global supply/demand balance'.
Splash understands Cosco is in advanced negotiations with yards in China for eight 15,000 TEU ships and eight 23,000 TEU vessels, orders that would be worth around US$1.8 billion, the report said.
Cosco declined to comment on the order speculation when contacted by Splash.
Andy Lane, a container shipping analyst at Singapore's CTI Consultancy, described the news emanating from Shanghai as 'strange timing' given the still large liner orderbook, the uncertain trade outlook and the likely impending slew of more environmental regulations coming shipping's way.
'With 10 per cent capacity added to the cellular fleet in the last two years and an existing orderbook for 8.4 per cent more, although this order does represent only a further 1.2 per cent growth, it comes at a time of great trade growth uncertainty,' Mr Lane said: 'But when China's yards are hungry, maybe Cosco is not fully in control of its own destiny.'
London's Lloyd's List reported that the Chinese liner giant has denied claims it is to return to the yards for boxship order. The report described as 'crazy and unrealistic' that Cosco was to spend the money made from the sale of Long Beach Container Terminal on 300,000 TEU of newbuildings.