China Shipping to cut rates
China Shipping Development Co., the oil-tanker and dry-bulk arm of China's second-biggest shipping group, will reduce average freight rates for some domestic shipments by about 39 percent from a year earlier.
The company signed agreements, known as contracts of affreightment, to cut fees on 58.65 million tons of freight volume, Shanghai-based China Shipping said in a statement to Hong Kong's stock exchange after the market's close. That volume is equal to about 68 percent of the company's total domestic bulk cargo shipments in 2008, it said.
China Shipping is also in talks to sign additional rate agreements for domestic bulk cargo, the company said, without giving more details. Domestic bulk shipments accounted for about 48 percent of total operating income last year, it said.
China Shipping said late it will form a liquefied natural gas venture with PetroChina International Co. The US$5 million venture will invest in and lease vessels to transport the gas, it said.
The company signed agreements, known as contracts of affreightment, to cut fees on 58.65 million tons of freight volume, Shanghai-based China Shipping said in a statement to Hong Kong's stock exchange after the market's close. That volume is equal to about 68 percent of the company's total domestic bulk cargo shipments in 2008, it said.
China Shipping is also in talks to sign additional rate agreements for domestic bulk cargo, the company said, without giving more details. Domestic bulk shipments accounted for about 48 percent of total operating income last year, it said.
China Shipping said late it will form a liquefied natural gas venture with PetroChina International Co. The US$5 million venture will invest in and lease vessels to transport the gas, it said.