December 11 - A statement on China's State Council website suggests that the merger between China Ocean Shipping Group (Cosco) and China Shipping Group (CSCL) has been approved.
According to reports, the country's two state-owned carriers will join forces to form a new company called China Cosco Shipping Group, based in Shanghai.
The Chinese deal, which would create the world's fourth largest container shipping company, comes hot on the heels of CMA CGM's agreement this week to purchase Neptune Orient Lines (NOL) for USD2.4 billion.
Consolidation it seems is the name of the game in the container shipping market, as the carriers struggle against strong pressure on capacity and pricing, with freight rates sitting at rock-bottom levels.
