Cosco plans to take advantage of falling price for new vessels

China Ocean Shipping Co (Cosco), the mainland's largest shipping company, is considering buying more vessels this year to take advantage of falling vessel prices, a company official said.

Song Dawei, executive director of Cosco (Hong Kong) Group, yesterday said a standard Panama-registered bulk cargo carrier was now a third cheaper than previously, costing only US$20 million instead of $28 million.

He would not comment further, but said Cosco was 'very conservative and that it will make purchases only when it has the money'.

Cosco had about a dozen container vessels scheduled for delivery this year and next from mainland and Japanese manufacturers, Mr Song said.

'The group's income flow and cash position remain sound and sufficient. There's no need to raise funds,' he said.

He refused to go into detail about the group's financial position but said it had improved on last year.