Merger of China Ocean Shipping Company and China Shipping Group

Shipping companies are now going through the toughest period since the financial crisis in 2008, and mergers are a key to overcoming difficulties, say the managers of Chinese shipping companies. The global container transportation industry is going to make a USD 5 billion loss this year due to low fares and small volumes of freight, excessive transportation capacity and higher operating costs, it has been forecasted by the maritime transportation consulting company Drewry.

In such conditions, the Government in Beijing initiated the merger of former rivals China Ocean Shipping (Group) Company and China Shipping Group to create a shipping giant called COSCOCS, which will be among the largest in the world.

COSCOCS will have a fleet of 830 vessels including container ships, dry bulk vessels and tankers, almost twice the combined fleet of Maersk and Mitsui O.S.K Lines, according to data from ship valuation firm VesselsValue, which does not take into account chartered-in vessels.

Drewry

China Ocean Shipping Company

China Shipping Group

COSCOCS

AP Moller Maersk

Mitsui OSK Lines

VesselsValue

Cosco Shipping Corporation

CRRC Corp

State Power Investment

Xu Lirong