China COSCO Holdings is said to be planning to place a large new order for dozens of bulkers in the first half of 2014, which is expected to become the largest volume ever in the last five years.

According to a local press (eworldship.com), China COSCO has entered a discussion over a newbuilding project with several yards and the newbuildings are said to be eco-friendly bulkers with high fuel-efficiency.

A related person said that China COSCO had carried out a newbuilding consultation with a yard capable of early delivery and was still under negotiation for construction payment, condition, vessel specification and so on.

On November 9, the Chinese government released ‘Detailed Provision of Governmental Subsidy for Ship Demolition’ and promised to provide subsidy worth CNY 1,500 (around $247) per ton, supporting fleet replacement of domestic owners through scrapping old vessels. Under this governmental policy, China COSCO is seen to keep enhancing its influence in bulk commodity shipping sector which is for food, iron ore, cement and so on, proceeding with a newbuilding project while demolishing old containerships.

Market players estimate that 300,000 gt vessels owned by the Chinese owner were expected to be sent to scrapping facilities within the next three years that it would be able to secure CNY 150m (around $25m) worth subsidy over the next three years under the policy, which corresponds to 6% of estimated net profit in 2014.