COSCO Shipping Lines and Pacific International Lines (PIL) have signed a time-charter agreement involving 12 vessels worth more than US$4.25m.
COSCO will spend more than US$2.5m leasing PIL’s 6,500 teu Kota Cantik, which has shore supply, at a daily rate of US$7,266 and five 4,250 teu ships at a daily rate of US$4,675 between September 2017 and April 2018.
The additional five vessels are the Kota Laju, the Kota Layar, the Kota Lambang, the Kota Lumayan, and the Kota Latif.
In exchange, the Chinese carrier has chartered out six 5,500 teu ships to PIL between September 2017 and June 2018, with daily rates ranging between US$5,990 and US$6,256.
These ships are the COSCO Shanghai, the Xin Xia Men, the COSCO Antwerp, the Xin Chang Shu, the Xin Fu Zhou, and the COSCO Hamburg.
COSCO said in a statement that it signed the agreement with PIL to tackle business needs and its ship deployment arrangements in the US, New Zealand, Africa and India, where the carrier has struggled with internal shipping capacity.
The agreement will also benefit COSCO by ensuring the deployment of surplus vessels.