COSCO & CSCL Confirm Merger Plan
Excerpt from : RP News | 10 August 2015
COSCO and China Shipping sources have just confirmed to PR News Service, that preliminary talks between the two lines have taken place “in recent days over a possible merger”. A working window of “up to three months” has been proposed by the lines in order to put together the final merger plan. Beyond that, nothing can be revealed as yet, apart from clarifying this is only linked to the container shipping of the lines’ businesses
Meanwhile shares in both companies and their listed subsidiaries on the Shanghai and Hong Kong stock exchanges, have ceased trading Monday august 10th, 2015
COSCO is a member line of the CKYH Alliance, and China Shipping is part of the Ocean Three agreement. Alphaliner lists COSCO as the sixth largest liner company with an owned and chartered fleet with capacity of 866,260 TEUs and China Shipping as having capacity of 699,606 TEUs. Combined with 1,565,866 TEUs, they would become the fourth largest container carrier, behind Maersk, Mediterranean Shipping Co., and CMA CGM, but ahead of Hapag-Lloyd and Evergreen Line. A combination of the two companies would be complex and affect others carriers: China Shipping is a member of the Ocean Three alliance with CMA CGM and United Arab Shipping Co., and COSCO is a member of the CKYHE Alliance with “K” Line, Yang Ming, Hanjin, and Evergreen
Reminder – Pier Pass
Beginning August 1, the TMF will be increased from $66.50 per TEU (twenty-foot equivalent unit) to $69.17 per TEU or $138.34 per forty-foot container.