The Chinese ocean carriers COSCON and CSCL on 1 March signed a series of leasing contracts for container ships and containers, marking the start of the official integration of the two companies’ container shipping operations.
The two companies have entered what they call an ‘integration transitional period’, a time during which COSCON will lease and operate CSCL box ships and containers and gradually integrate CSCL network assets and services.
For the time being, and until new global partnerships are forged, COSCON and CSCL will retain their current East - West networks within the two carriers’ respective CKYHE and ‘Ocean 3’ arrangements.
CSCL’s containerships line-up, with a capacity 706,000 teu, will be integrated into COSCON to create a combined fleet of 289 units. As per 1 March, the merged fleet totals at 1.56 Mteu, based on date from the Alphaliner carriers league table. Globally, it is ranked in fourth position, after APM-Maersk (3.02 Mteu), MSC (2.66 Mteu) andthe CMA CGM Group (1.81 Mteu).
The reform of the Chinese state-owned shipping industry was officially announced on 11 December 2015, with the restructuring of key assets involving China COSCO, COSCO Pacific, China Shipping Container Lines (CSCL), and China Shipping Development (CSD).
Apart from the combination of COSCON and CSCL’s container shipping operations, China COSCO will also divest the bulk shipping business, while COSCO Pacific will buy the port assets of China Shipping and CSCL. CSCL will be transformed into a pure asset owner that will lease out ships and container boxes, acquiring the leasing business held by COSCO and China Shipping and injecting other ship financing business and assets.