From a Reuters report titled ”China launches new shipping giant to battle downturn”:
China on Thursday launched a challenge to global shippers AP Moller Maersk and Mitsui OSK Lines, but analysts said the giant company must slim down its workforce and order book to weather one of the industry’s worst-ever slumps.
Created from the state-driven merger of former rivals China Ocean Shipping (Group) Company [COSCO.UL] and China Shipping Group [CNSHI.UL], China Cosco Shipping Corporation (COSCOCS) will control one of the world’s largest fleets of dry bulk vessels, container ships and oil tankers.
At the COSCOCS launch event, company chairman Xu Lirong acknowledged the industry was experiencing its worst downturn since 2008 and said mergers were key to riding out slump.
