BEIJING/SINGAPORE: China’s Cosco Shipping Lines Company and Singapore’s Pacific International Lines (PIL) have entered into a mutual time-charter agreement involving 12 vessels in light of their respective business needs.
Cosco Shipping Lines has leased a 6,500-TEU container vessel with shore supply and five 4,250- TEU container vessels from PIL. On the other hand, PIL has chartered in six 5,500- TEU boxships from Cosco Shipping Lines.
PIL has chartered out the 6,500- TEU Kota Cantik at a daily rate of $7,266.60 to Cosco Shipping Lines from 5 September 2017 to 3 April 2018, and the five 4,250- TEU ships (Kota Laju, Kota Layar, Kota Lambang, Kota Lumayan, Kota Latif) at a daily rate of $4,675 over the same period.
Cosco Shipping Lines chartered out to PIL its six ships (Cosco Shanghai, Xin Xia Men, Cosco Antwerp, Xin Chang Shu, Xin Fu Zhou, Cosco Hamburg) at daily rates of between $5,990.60-6,256.80 over the period of 5 September 2017 to 25 June 2018.
Cosco Shipping Lines said the pact with PIL was sealed in view of business needs and ship deployment arrangement in the shipping routes for Southwestern US, New Zealand, Africa and India.
“The transaction may resolve the difficulties faced by Cosco Shipping Lines for lack of suitable internal shipping capacity and the ‘ship hiring difficulty’ for specific ship type in the external ship leasing market, and to satisfy the above specific requirement for shipping route capacity by Cosco Shipping Lines,” the Chinese shipowner stated.