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Cosco inks charter deal with PIL to resolve ‘ship hiring difficulty’

Wed 06 Sep 2017 by Rebecca Moore

Cosco inks charter deal with PIL to resolve ‘ship hiring difficulty’
COSCO and PIL have inked a time charter contract for 12 container ships

Cosco Shipping has struck a time charter agreement with Pacific International Lines (PIL) for 12 box ships.

Cosco will lease a 6,500 TEU container vessel with shore supply and five 4,250 TEU container vessels from PIL. The Singapore-headquartered company will charter six 5,500 TEU container vessels from Cosco.

Cosco said in a statement that the chartering transaction may “resolve the difficulties faced by Cosco Shipping Lines Group for lack of suitable internal shipping capacity and the ‘ship hiring difficulty’ for specific ship types in the external ship leasing market” in the southwestern United States, New Zealand, Africa and India shipping routes.

The rental price has been set at US$1.1 per TEU per day. The aggregate transaction amount of chartering vessels involved is approximately US$18.7M.

The chartering period spans 5 September 2017 – May-July 2018.