China COSCO Scrap Seven Ships

China COSCO Holdings inform that in accordance with its plan to streamline its fleet it sent 7 vessels for demolition in April 2014. Details as follows:

The scrapped ships were the container ship Dahe, and six bulk carriers (Feng Guanghai, Tian Changhai, Fuqiang, Leyuan, Fuyou and Lehuan).

The vessels, with the aggregate capacity of 530,790 deadweight tons, were disposed of as scrapped vessels to different purchasers, at a total consideration of approximately RMB166.09 million (US$26.57m)). According to the unaudited financial results of the Company for the month ended 30 April 2014, realized losses incurred from the disassembly of the Vessels amounted to approximately RMB80.93 million.

China COSCO said the disposal of older ships has helped the company lower the average age of its entire fleet, reduce fuel consumption and raise the overall competitiveness of the company’s operations.