China Cosco Shipping Corporation, formed by the merger of former rivals China Ocean Shipping Group Company and China Shipping Group(COSCOCS), one of the World’s largest fleets dry bulk vessels, container ships and oil tankers.
Few liner companies have come up to face current challenges, especially to shrink the combined company. The shipping industry has suffered years of losses, and the global financial crisis has brought the shipping to wind up. The new vessels created the oversupply and freight rates recorded low earnings. The creation of COSCOCS by merger was a key to survive the slump. The COSCOCS had assured no layoffs and staff wage cuts.
COSCOCS employs double the workforce of Maersk, own 830 vessels, inclusive of containerships, dry bulk vessels and tankers, which is twice the combined fleet of Maersk and Mitsui O.S.K.Lines, exclusive of chartered-in vessels. COSCOCS huge size will work best to its expectations and can compete for market share rather than remaining as two separate loss companies. The merger has given them a fighting chance if otherwise they would have been sailing in the same old boat.
Source: Reuters
