Cosco, China Shipping merger approved
China’s cabinet has approved the restructuring of the country’s two biggest shipping conglomerates, creating the largest oil tanker fleet in the world and the fourth biggest container line.
The move will improve the competitive edge of major Chinese shipping lines by realizing economies of scale, as the global shipping industry faces a long-term downturn, according to a joint reply to Xinhua’s questions from the chairmen of the two companies.
COSCO has an annual freight volume of over 400 million tons, with more than 700 ships whose total deadweight reaches 51 million tons. China Shipping has more than 530 ships with 36 million tons of deadweight.