Cosco is the world's largest transport operators of ships, iron ore, coal and other bulk goods. But business is bad. There is excess capacity. Cosco combines three subsidiaries. by Claudia Wanner, Hong Kong and Patrick Hagen, Cologne
The Chinese transport shipping company Cosco responding with a conversion to falling prices in the marine transportation of bulk commodities. Cosco will bring together three previously separate companies for the shipment of bulk commodities such as ore, grain or coal in a company, the Reuters news agency quoted a manager of the majority state-owned enterprise. It is Cosco Bulk Carrier, Cosco Hong Kong Shipping and Qingdao Ocean Shipping. "This allows us to confront our customers in future price negotiations uniform," said the manager.
The market for bulk carrier suffers from huge overcapacity, which provide pressure on prices. This is especially true for Capesize freighter. They are so called because they are too large for the Suez Canal and, therefore, to turn around the Cape of Good Hope have. Typical Capesize ships can carry 175,000 tonnes.
The three daughters Cosco operate more than 400 bulk carriers, the three daughters Cosco operate more than 400 bulk carriers
In recent years, shipowners have ordered large numbers of new buildings coming onto the market. The volume of cargo holds with the excess supply does not keep pace, so drop the rent, charter rates in the industry jargon.
The three daughters Cosco operate more than 400 bulk carriers, which makes the company the largest supplier worldwide. In addition to its own ships, the Group uses a number of long-term rental boats. The price decline in this business as well as in the container transport has significantly added to Cosco. In the first half of the shipping company ran a loss of 2.76 billion yuan (300 million euros).
In the difficult environment Cosco had initially responded very idiosyncratic: The Group had not paid the owners of at least three more mature charter. These prices have recently fallen sharply. During the boom days of 2008 well over $ 80,000 rent per day for Capesize vessels were due, the rates have now fallen to less than 17,000 dollars. Pay because of long-term contracts must Cosco up to eight times the current market prices - while the freight rates, which the company receives from its customers for the transports are in the basement.
Cosco had explained to his ruthless approach, the company was not in financial distress, but strive only to an adjustment of the charter.
But when it suspended payments for the ships were owned by their vessels at least three Cosco pledge by a court in Singapore and the United States in order to collect their mortgage debts. Meanwhile, Cosco has agreed with at least two owners.
Both confirmed Dryships from Greece and the Chinese Jinhui Shipping, cooperation walk normally again. Cosco has thus prevent further seizures.
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It is still unclear whether the Chinese could prevail in a bid to lower prices. A very common pattern: The running time is extended for the reduced rate.
German shipowner appeared unconcerned. "We have the ER Brighton 'chartered to Cosco," said Tino Drenger of Northern Capital. "Cosco is a reliable partner and has never been the desire to come with us on rate cuts