China Shipping Development News

China celebrated its 19th National Maritime Day on July 11, with celebrations taking place in museums and schools along with a range of technical conferences.The Ministry of Transport released the 2022 China Shipping Development Report which showed that container throughput at ports increased by 4.7% and the volume of rail-water multi-modal transport routes increased by 16% year-on-year.China Daily reports Vice-Transport Minister Fu Xuyin saying: “By the end of last year, the Chinese fleet reached a carrying capacity of 370 million deadweight tons…

China's largest shipping company by fleet size China COSCO Shipping Co has officially launched COSCO Shipping Energy Transportation Co in Shanghai on Monday, creating the world's largest oil tanker fleet in terms of both ship numbers and deadweight tonnage, says a report in China.org.cn. With a total of 105 oil tankers, including nine liquefied natural gas carriers and a deadweight tonnage of 17.04 million, the new company has the world's biggest fleet of oil tankers and the largest transport capacity of its kind. The asset value of COSCO Shipping Energy Transportation accounts for 11 percent of COSCO Shipping's total assets, and its oil tanker fleet holds 20 percent of the group's entire shipping capacity.

China COSCO Shipping Co. Ltd (China COSCO Shipping) officially  inaugurated the company “COSCO shipping Financial Holdings Limited (COSCO shipping Financial) in Hong Kong. It was former China Shipping (Hong Kong) Holdings, reports Sinocast. The formation of Cosco Shipping Financial followed the completion of the merger between China Cosco Group and China Shipping Group in February this year to become Coscocs. COSCO Shipping Financial Holdings, together with China Shipping Container Lines, will form a financial holding platform of China COSCO Shipping Corporation. Its businesses include ship leasing, container leasing and manufacturing, non-shipping business, equity investment, internal financial services, banking equities and insurance business.

China Shipping Container Lines Co. posted a net loss of 2.9 billion yuan ($448.5m)  in 2015, compared with profit of 1.04 billion yuan in 2014, the nation’s second-biggest container shipping company said in a statement. China Shipping in January had forecast a loss of 2.8 billion yuan for 2015. The revenues also fell 12% to RMB31.83bn from RMB36.08bn previously, the company said. The operating result has been of sign negative for -2.49 billion yuan respect to an operating profit of 1.96 billion yuan in 2014. Both international and domestic volumes were affected, falling 3.6% and 3.4% respectively. Last year the fleet of portacontainer of Chinese CSCL has transported cargo volumes pairs to altogether 7.8 million container teu…

China Shipping Development Company Limited (CSDC) achieved 34.95% higher profit for 2015 totaling in RMB417 million ($64.3 million) when compared to figures from 2014, mostly due to a very strong tanker market. The revenue was stable at RMB12.21bn in 2015 compared to RMB12.27bn in 2014 for CSDC, the tanker and bulker unit of China Shipping Group. “In 2015, the oil shipping market was better than in 2014 in general. Affected by beneficial afactors such as the higher shipping prices, significant decrease in fuel prices and gradual realisation of results from various innovative measures of the company, oil shipping business obtained a good result,” CSDC stated. The Shanghai-and Hong Kong-listed company added that lower fuel cost was the “highlight” of its cost controlling efforts.

Chinese shipping subsidiaries will realign their businesses in response to the merger between China Ocean Shipping (Group), known as Cosco Group, and China Shipping Group, reports Nikkei. Sinotrans & CSC Holdings Co., the nation's third largest shipping company, will become a wholly-owned subsidiary of China Merchants Group (CMG). Earlier in December, China approved the merger of another two of its biggest state-owned shipping companies, China Ocean Shipping Group (Cosco) and China Shipping Group. China Cosco Holdings is selling its entire stake in a bulk shipping company to parent Cosco Group for 6.77 billion yuan ($1.04 billion). Meanwhile, Cosco Pacific will buy a port operator from China Shipping Container Lines for 7.63 billion yuan.

Hong Kong-listed China Shipping Development (CSD) , part of Chinese state giant China Shipping Group, posted a net profit of 391 million yuan, up 800 per cent compared to the same quarter last year.   Driven by strong tanker performance, CSD had a much better third quarter. Revenue grew 9 per cent to 3.44 billion yuan. For January to September, its net profit surged nearly 500 per cent to 745 million yuan.    CSD said it expects its full year net profit would increase by over 100 per cent year on year, boosted by the increase in freight rates in the oil transportation market and the company’s effort in reining in costs.

The closed-door talks on what is believed to be merger discussions between Cosco and China Shipping continue, reports local media. According to JoC, the Chinese executives of the carriers have been tight lipped on the discussions, but it is widely believed that the lines are thrashing out ways to merge the container and bulk shipping divisions. Reports say that the Beijing government would like preliminary merger plan within three months, beginning from August. The merger is in line with China's current strategy of consolidation of state-owned enterprises (SOE).

China Merchants Energy Shipping Co., Ltd (CMES), the dry and wet bulk arm of state conglomerate China Merchants Holdings (International) Company Limited, has set up a wholly owned subsidiary China VLOC Company Limited to operate 400,000 dwt ore carriers in Hong Kong. The new Hong Kong-based subsidiary will own the four Very Large Ore Carriers (VLOC) or "Valemax" vessels, purchased at a total price of $448m by CMES. The 400,000-deadweight-tonne ships are some of the largest ships ever built and were sold under accords between Vale and China Merchants. CMES had earlier entered into a deal for it to order 10 VLOCs against a 25-year contract of affreightment (COA) with Vale.

The bulker and tanker unit of state conglomerate China Shipping Group, China Shipping Development Co (CSDC) has delivered a first half performance which saw its profit spike, exceeding the company's latest forecast. CSDC has recorded a six-fold increase in profit in the first half of this year, mainly supported by a strong tanker market and lower income tax. It has recorded a six-month profit of $46.96m, a jump of 602.1% from the same period of 2014. CSDC disposed of 27 dry bulk carriers during the first six months and took delivery of seven vessels. CSDC said that the demand-supply imbalance of the bulk shipping market will continue in the second half of 2015, but newbuilding orders have slowed down.

Ship scrapping subsidy program originally due to run to end-2015; show of government support amid continuing industry downturn. China on Tuesday extended by two years a subsidy programme that encourages shipping companies to scrap old vessels in a bid to support an industry struggling to emerge from a global downturn. The scheme, which began in 2013 and was due to end this year, gives shipping lines grants of 1,500 yuan ($241.67) per gross ton to replace old vessels with newer, more environmentally friendly models. These subsidies helped state-backed shippers including China COSCO  and China Shipping Development to post a higher 2014 profit despite the slump in the global industry. China Cosco said it would have posted a loss had it not been for the subsidies.

China’s total international shipping volume will reach 6.2bn tons, which will account for 17% of the world’s shipping volume, says 2030 China Shipping Development Outlook report published by the Shanghai International Shipping Institute. Container throughput in China will reach 505 million 20-foot-equivalent units by 2030, three super container hub ports will be formed in Shanghai, Qingdao and Hong Kong, and Chinese firms will become global container terminal operators. In 2030, China’s coastal shipping volume is projected to reach well over 3.3 billion tonnes, and its coastal container shipping volume around 116 million TEU, taking up nearly half of China’s total coastal transportation. China’s ship financing will also account for 30 percent of the world’s volume.

China Shipping Development (CSD) and Cosco have established a joint venture (JV), China Ore Shipping Pte., in Singapore to purchase four 400,000 dwt ore carriers from Vale and operate them. CSD and Cosco’s bulk shipping division Cosco Bulk Shipping holds 49% and 51% equity shares in the JV respectively. China Ore Shipping will buy four second-hand valemax vessels from Vale Shipping Singapore Pte., a unit of the world's major iron-ore producer, for 445 million U.S. dollars, says a joint statement from the companies. It has signed a 20-year pact with Vale, under which Vale will charter ships owned by China Ore Shipping to transport the steel-making raw material to the world's second-largest economy.

The Shanghai-and-Hong Kong-listed flagship unit of China Ocean Shipping Group, China Cosco Holdings Co Ltd says that its 2014 net profit went up 54 percent y/y at 362.5 million Yuan ($58.37 million), on government subsidies for scrapping old tonnage. Excluding one-off gains, its loss narrowed 81% y/y to 1.4 billion Yuan due to slump in fuel costs and contraction of its chartered-in fleet, according to the company's stock filing on 27 March. China Cosco said it would have made a loss of 1.38 billion Yuan without factors such as the subsidies and money raised from a share sale. "With the market still remaining subdued, the outlook for the shipping market in 2015 is not optimistic," it said in its statement.

Hong Kong unit of China Shipping Development, the oil and dry bulk shipping arm of state conglomerate China Shipping Group, has booked four very large crude carriers (VLCCs) at a compatriot yard. The worth a total of $375.92m was placed with Dalian Shipbuilding Industry Co (DSIC). The four new 308,000 dwt oil tankers, each costing around $94m, are scheduled to be delivered between May 2017 to September 2018. The construction of the VLCCs will be funded by bank funding and internal financial resources. The delivery of the new vessels will enable the company to optimize its overall route arrangements and improve its operating efficiency and profitability, said the company.

Bank of China and China Shipping Group (CSG ) signed a global strategic cooperation agreement worth $14 billion (RMB90bln) in Beijing yesterday to develop cooperation opportunities worldwide, especially in the Shanghai Free Trade Zone (FTZ). According to the agreement, both parties will enhance co-operation in loans and cash management, direct financing, financial consulting, investment and insurance. This collaboration is a move to implement China's 'One Belt and One Road' initiative, which aims to link China with Africa, Europe and Southeast Asia for common development. The move was a result of a recent state initiative to promote the development of the maritime industry, CSG said.

China Cosco Holdings ended 2014 in profitable territory, growing its net earnings by 50 percent to $56 million on the back of cost cuts, improved revenue and lower bunker fuel prices. The company, the flagship unit of state-owned shipping conglomerate China Ocean Shipping (Group) Corporation, in 2013 reported a net profit of 235.5 million Yuan ($37.7 million). A company stock exchange filing said various measures had been taken to increase revenues and cut costs as the imbalance between supply and demand in the international shipping industry showed no substantial improvement in 2014. Ma Zehua, chairman of the board of Cosco Group, said earlier that the group had achieved around $400 million savings in fuel bills last year compared to the previous year…

China has issued further guidance to support and modernize its shipping industry, saying it would encourage mergers and private investment as well as develop its cruise industry. The world's biggest trading nation is focusing on the shipping industry as it grows more assertive over territorial disputes in the South China Sea, unnerving neighbors such as Vietnam and Japan, and looks to secure its supply chains. It comes as the global shipping industry has been struggling to recover from a prolonged slump brought on by a glut of ships ordered before the global financial crisis of 2008/09. That has weighed on freight rates in recent years, resulting in heavy losses at firms such as China COSCO (601919.SS).

China Shipping Development and Sinopec Kantons are to spend HK$11.71 billion to buy six LNG carriers, which will be chartered to Sinopec. The two companies have set up a joint venture China Energy Shipping Investment (CESI) which is 51 percent controlled by China Shipping and 49 percent by Sinopec Kantons, for the deal, reports the 'Hong Kong Standard'. Both companies said the deal is to expand their logistics business. China Shipping consider that steady rental income will be generated as Sinopec will lease the carriers for the transportation of LNG to and from its Australia Pacific Project. The delivery date of the six LNG carriers will be from April 2016 to November 2017. Source: Hong Kong Standard

China Shipping Development Company Limited reports 'Business Income' decreased 9.1% as against 2011 figures. Year 2012 saw a sluggish recovery of the world economy, so the shipping market continued the low trend. With rising fuel costs and port charges, suppressed by low freight, many shipping companies are in difficulties. Under the correct leadership of the board of directors, China Shipping has taken steady steps to push forward the strategy of “big ships, big clients, big cooperation”, combined with refined management of production, cost control, plus building of talent teams, maintained a healthy trend of enterprise development. The total annual turnover was 389 billion ton/mile, 12.6% increase than last year, total business income 11.05 billion Yuan, a decrease of 9.1%.

China Shipping Development Co. to order six liquefied natural gas (LNG) to tap the nation’s rising demand for cleaner fuel. The addition of the tankers comes as the world’s largest energy consumer plans to more than double natural gas consumption to cut its dependence on coal and oil. The six-tankship purchase will be made by a venture owned by China Petrochemical Corp., also known as Sinopec Group, China Shipping and Mitsui O.S.K Lines Ltd. (9104) and each ship will have a capacity to carry 174,000 cubic meters of natural gas. reports Bloomberg. Bloomberg was informed by Chief Financial Officer Wang Kangtian that the vessels will cost about $205 million each and the shipping company has arranged syndicated loans to finance the deal. Source: Bloomberg

According to a Nov. 29 report from Bloomberg, China Shipping Development Co., the dry-bulk arm of the nation’s second-biggest shipping group, signed agreements to purchase eight 48,000 dead weight ton tankers for a combined $293m. The tankers are expected to be delivered from July 31 through Dec. 31, 2012. (Source: Bloomberg)

According to an August 18 report from Bloomberg, China Shipping Development Co., part of China’s second-biggest sea-cargo group, ordered 14 dry-bulk ships after rebounding rates helped it report a 60% jump in first-half profit. The company will pay $424m for the vessels, according to a Shanghai Stock Exchange statement today. The shipping line said late yesterday that first-half net income rose to $144m from $90.2m a year earlier. The result was in line with analysts’ estimates. (Source: Bloomberg)