Home > Business > Ship Trading Agency Services The Company’s 60% equity owned subsidiary, COSCO International Ship Trading Company Limited (“COSCO Ship Trading”), acts as an upstream services provider in the supply chain of provision of shipping services. COSCO Ship Trading is the window company within COSCO Group providing exclusive agency services relating to shipbuilding, ship trading and chartering mainly for COSCO Group’s fleets as well as relevant agency services for non-COSCO Group shipping companies. The shipping industry has experienced a revival in recent years. Number of orders for new vessels increased and bookings for large-scale shipbuilders were scheduled beyond 2011. Moreover, the costs and prices of new vessels remain at high levels because of stringent new international regulations on vessel safety performance, soaring cost of shipbuilding materials and marine equipment, as well as volatile currency rates in foreign exchange markets. During the year, by taking full advantage of opportunities arising from thriving shipbuilding industry and the support of COSCO, COSCO Ship Trading achieved the highest record in transactions consummated for sale and purchase of new vessels COSCO Ship Trading consummated transactions for the sale and purchase of 107 vessels (2006: 84 vessels), amounting to a total of 6,670,000 dead weight tonnages (2006: 6,140,000 dead weight tonnages). The shipbuilding market is expected to continue to be led by sellers in 2008, with vessel prices in general remaining high. Despite the slow down of economy in the United States would pose negative impacts on bankers and financial institutions, which may affect the capital financing for shipbuilding industry, it will have little impact on those new vessels scheduled to be delivered in 2008 and thus the total shipping capacity is expected to increase in 2008. The characteristic of long queue for new ships delivery has prompted an increase in demand for second-hand vessels, which has resulted vessel prices remaining high. In response to this market environment, COSCO Ship Trading will capitalise on the business opportunities driven by the expansion of COSCO Group’s fleet and ship buying and building plans in each COSCO Group shipping company. In addition, COSCO Ship Trading will continue to explore the provision of ship trading agency services for non-COSCO Group customers in pursuing higher operating efficiency.