China COSCO Holdings has announced the disposal of 17 vessels with a combined tonnage of 919,853 dwt.
The Chinese shipowner has sold four containerships and 13 dry bulk carriers to the scrapyards between September to December last year, fetching in RMB318.2m ($51.2m) but realising a loss of RMB123.86m. The loss, however, would be offset by the government subsidies that the group received for sending their older vessels for demolition and ordering new ships.
COSCO Holdings has been taking advantage of a scrapping policy that Beijing announced last year, which offers subsidies for vessels sent for demolition. In January last year, the company announced that it would scrap 41 ships before 2015. It now has met the goal, having scrapped 24 ships in the first half.
The COSCO group last has secured a $1.75Bn financial agreement with Export-Import Bank of China for its newbuilding programme.