Cosco scraps five 3,400 teu ships for $13.5m

The 1997-Samsung built 3,400-teu sister ships are all smaller vessels around nearly the 20-year mark.

Cosco said as a result of the scrapping, the fuel savings and overall environmental friendliness of its fleet has improved.

"The Board considers that the decommissioning of the vessels is conducive to enhancing the overall operational competitiveness of the shipping fleet of the vompany and is in the interest of the company and the shareholders as a whole," Cosco said in the announcement.

Also, suggesting that more fleet rationalisation is imminent, Cosco added: "The company will keep its shareholders and potential investors informed of further development in connection with its plan to decommission aged vessels by way offurther announcement(s) as and when appropriate or necessary."