COSCO Shipping Development

COSCO Shipping Development Co., Ltd., stylized as COSCO SHIPPING Development is a financial services company based in Shanghai, China. It was known as China Shipping Container Lines (CSCL) and was among the world's largest container liner companies. It exited the container shipping business and was renamed to COSCO SHIPPING Development because of the COSCO-China Shipping merger in 2016.[1]

Not to be confused with China Shipping Development.
For the parent company, see COSCO Shipping. For the container line successor, see COSCO Shipping Lines.
COSCO SHIPPING Development Co., Ltd
Native name
中远海运发展股份有限公司
FormerlyChina Shipping Container Lines
TypePublic
IndustryShipping and logistics
Founded1997
Headquarters
Shanghai
,
China
Key people
Wang Daxiong (Chairman)
Products
OwnerCosco Shipping (via China Shipping Group)
ParentChina Shipping Group
Websiteen.development.coscoshipping.com

As CSCL, the company was ranked 1503rd in 2012 edition of Forbes Global 2000.[2]

History

In 1997, the Chinese government founded China Shipping Group as a SOE. That same year, China Shipping Container Lines Co. Ltd (CSCL) was founded in Shanghai as a subsidiary of China Shipping Group.

China Shipping container

After China joined the WTO in 2001, CSCL grew rapidly, playing a major role in supporting China's economic advancement and international trade. With continued support from the Chinese government, CSCL's global TEU market share increased 126% between 2000 and 2006, becoming the second fastest growing container carrier in the world. In 2004, CSCL became the world's tenth largest ocean container line in terms of TEU capacity, and in 2007, it became the world's sixth largest.[3] In 2005, CSCL was named the “World’s Most Profitable Container Liner Company” by the journal American Shipper. In 2007 and again in 2008, Long Beach Port Authority awarded CSCL the 'Honor of Environmental Protection'. In 2009, CSCL was awarded the 'Best Annual Carrier' by Michaels Stores.[4][5]

In China, CSCL had in-house trucking companies, a container yard, and the company called on 12 Chinese seaports and several riverports. The company owned assets in dozens of countries. Over the years, CSCL developed a large intermodal network in the US by contracting with trucking companies and all major US railroads. In May 2001, CSCL, Marine Terminal Corporation, and BNSF Railway announced a twice-weekly on-dock train service to deliver China Shipping containers from the Port of Los Angeles to Chicago, IL.[6]

CSCL first went public in 2004 on the Hong Kong Stock Exchange, issuing 2.42 billion shares. CSCL made another IPO in 2007 on the Shanghai Stock Exchange. CSCL's early successes were credited to the leadership of Captain Li Kelin. In 2006, after Kelin retired, Li Shaode – who had 40 years of experience in the shipping industry – was appointed chairman of CSCL. Shaode along with other veteran members of the leadership team continued CSCL's tradition of success. As China increasingly became the world's factory, CSCL played a significant role in transporting exports of consumer goods and imports of recycled material from developed countries.

On July 1, 2013, CSCL suspended all its services in Iran due to US sanctions.[7] In 2014, CSCL along with CMA CGM and United Arab Shipping formed the Ocean Three Alliance – a business agreement to share vessel space.[8] In December 2014, CSCL christened the 19,100 TEU CSCL Globe, the world's largest container ship at the time. By May 2014, China Shipping Container Line's service profile consisted of 40 routes including trans-Pacific, trans-Atlantic, Asia-Europe, Asia-Africa, and intra-Asia routes and a fleet of 148 container vessels totaling 656,000 TEUs.[9]

In February 2016, CSCL's parent company, China Shipping Group completed a merger with COSCO Group to form COSCO SHIPPING Group. CSCL's assets were transferred to the container shipping branch of COSCO Group, COSCO Container Lines.[10] CSCL's shareholders approved 100% acquisition of Florens Container Lease, the container leasing subsidiary of COSCO Group and Dong Fang International Investment, the container leasing subsidiary of China Shipping Group.[11] CSCL's shareholders also approved taking over the ship leasing subsidiary of China Shipping Group, Oriental Fleet International Ltd. As a result, CSCL was renamed COSCO SHIPPING Development Co. and became a holding company for COSCO SHIPPING's container and ship leasing business.

Services

The company provides container and ship leasing, container manufacturing, marine insurance brokerage, and risk management for ocean shipping companies.[12]

COSCO SHIPPING Development owns Florens Asset Management, one of the world's leading lessors of intermodal shipping containers. As of March 2020, Florens' container fleet consisted of 3.65 million TEUs. Florens leases dry containers, reefers, open-top containers, and flat racks on short- and long-term leases. Florens Asset Management was founded in 1987 and was previously a wholly owned subsidiary of COSCO Group. Florens also incorporates the container fleet of Dong Fang International Asset Management, which was owned by China Shipping Group.

References
  1. Knowler, Greg (July 4, 2016). "CSCL to get a new name as it shifts focus from boxes to finance". JOC.com. Retrieved 2020-11-30.
  2. "China Shipping Container". Forbes.com. Retrieved 14 December 2020.
  3. Zhang, Wenxian; Alon, Ilan (2010). A Guide to the Top 100 Companies in China. Singapore: World Scientific. ISBN 978-9814291460.
  4. "COSCO SHIPPING Development/About Us/Global Awards". Retrieved 2020-11-30.
  5. "Michaels Stores, Inc. Announces Vendor and Carrier Partnership of the Year Awards". August 25, 2009. Retrieved 2020-11-30.
  6. "China Shipping (North America) Holding Co., Ltd. & China Shipping (North America) Agency Co., Inc.: About Us". Retrieved 2020-11-30.
  7. Saul, Jonathan (July 1, 2013). "Chinese firms drop Iran as latest U.S. sanctions bite". Reuters. Retrieved 2020-11-30.
  8. Barnard, Bruce (September 9, 2014). "'Ocean Three' Alliance formed by CMA CGM, China Shipping, UASC". JOC.com. Retrieved 2020-11-30.
  9. "China Shipping (North America) Holding Co., Ltd. & China Shipping (North America) Agency Co., Inc.: About Us". Retrieved 2020-11-30.
  10. van Marle, Gavin (December 14, 2015). "Merger with Cosco would mean an exit from container shipping sector for China Shipping". The Loadstar. Retrieved 2020-11-30.
  11. "Integration of Container Leasing and Trading Businesses and Operations between the Corporate Groups of Florens Container Holdings Limited and Dong Fang International Investment Limited" (PDF) (Press release). Retrieved 2020-11-30.
  12. http://en.development.coscoshipping.com/
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