Following up on an announcement last August, China COSCO has been busy this year selling their ships for scrap as part of their company’s restructuring plan.
In an exchange filing today, China COSCO announced that in the first quarter of 2014, twelve container vessels and four bulk carriers representing an aggregate capacity of 803,087 deadweight tons were sold for scrap for approximately RMB466.49 million (USD $74.7 million).
COSCO notes the sale generated a net loss for the company of approximately RMB 793.53 million (USD $127 million).
The twelve container vessels include Longhou, Conghe, Yanhe, Longhe, Shenghe, Tenghe, Zhonghe, Puhe, Taihe, Junhe, Yuanhe and Feihe, all of which were previously owned by COSCO Container Lines Co. Ltd.
The four bulk carriers to be decommissioned include Pengye, Pengqing, Xinshenghai and Bailuhai, all of which were previously owned by China COSCO Bulk Shipping (Group) Company Ltd.
Where does a huge portion of the world’s merchant fleet go to die? Click HERE to find out.