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COSCO China Shipping Merger: The New Container Shipping Company
Whenever there is talk about shipping through sea, there is one that cannot be ignored and that is China COSCO Shipping, but that was not the case before 2016, because before January 2016 there were two separate giants ruling the oceans. The first one was China shipping company and the second one was COSCO ltd. These two used to be competitors, but due to the an ongoing downturn in some sectors of marine industry began, the GDP on global level was decreasing which led to low amount of shipping of products, and the problem was that there were too many fleets but not so much cargo to transport which ultimately led to reduction in demand of cargo shipping. Both COSCO and China shipping group were left with few customers, so they had to do COSCO China Shipping Merger. Let's have a look at history of both companies.
History of COSCO group
The COSCO group or "China Ocean Shipping Company" was founded 56 years ago in the first quarter of year 1961 in the month of April 27. It was government owned company by people's republic of China. It's headquarter was in Xicheng District in Beijing. It owns 1114 ships, including 365 dry bulk vessels, a container fleet with a capacity of 1,580,000 (TEU). In 2012, COSCO made it in the top 15 brands of china.
History of China Shipping-CSCL
The China Shipping Group was founded in the year 1997, It was a state owned company serving within the people's republic of china,. The main services of China shipping were shipping of oil tankers, passenger ships and container vessels. The company faced a tough time back in 2013 when there was a downtrend in marine industry and till December 2015, the company had decided to merge with COSCO, and finally they were merged in January 2016 to be headquartered in Shanghai.
COSCO China Shipping Merger New Company
After January 2016 a new name emerged in the world of shipping, which not only in China but has also proved its potential on the global level. COSCO China Shipping Merger one new company is far bigger and far better than the two separated companies were. By merging into a new company, their services also merged and now this single company is providing almost all services related to shipping and logistics in marine industries. China COSCO Shipping Corporation Limited. The total fleet of China COSCO Shipping comprises of 1114 vessels with a capacity of 85.32 million DWT, ranking No.1 in the world. Its container fleet capacity is 1.58 million TEU, ranking the fourth in the world.
According to Fortune.com, China COSCO Shipping in terms of finance is ranked #366 on the 2017 Fortune 500 list. Who would've thought that two companies whore were badly injured by the downtrend in 2013 will emerge as one giant company which will be ranked as #1 in terms of vessels, number 4 in terms of its container capacity and number 366 in terms of its finance in the whole world,