Cosco Corp/Yangzijiang; Cosco Group, China’s largest shipping company & parent of SGX-listed Cosco Corp does not plan to purchase any more vessels this year because of overcapacity in the global market. Shipping lines around the world are struggling with too many vessels in the market, which have depressed rates & forcedcarriers to slow the speed of vessels to pare fuel usage.
The scrapping of older carriers will also increase in the coming years as shipping companies invest in new, more environmentally friendly vessels. This is pertinent as >50% of Cosco’s orderbook is contributed by its parent. But increased scrappage will benefit YZJ once the environmental license for its ship-breaking business is approved.
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