The struggles of Chinese—control—
led Hosco Hong Kong Ltd (Hosco
HK) are creating interesting opportunities for other Chinese shipowners through “envelope” time-charter deals that are helping keep Hosco’s fleet in business. The affiliate of low—key Hebei
Ocean Shipping Co (Hosco) is not discussing its business activities
and even refuses to confirm it is still a shipowner. But some ship-owning and chartering sources in China say Hosco HK still has a fleet of its own. Hosco and
former subsidiary North China Shipping (NCS), now apparently controlled by Tiger Group Investments. Hosco HK is still an owner after the split.
Sources close to mainland-based owners, including Hosco HK’s long-term partner, Cosco, explain that they are in eflect acting as middlemen taking on the
financial risk of dealing with the
troubled owner’s remaining bulkers. Numerous end users fear chartering directly from Hosco in case of arrests or other third-party consequences, while several broking houses have been burned by unpaid commissions and now refuse
to deal with them. But the “envelope” charters with Cosco and oth-
ers keep the ships trading, albeit at
a discount.
“Some of the major charterers
are restricted from doing business
with them but they can find play-
ers in the market who can take
their tonnage,” said one such play-
er. “They charter to us, we assume
the risk of chartering with Hosco,
and the major charters from us.”
Asked for a current Hosco HK
fleet list, the owning official said:
“I wouldn’t give it to you if I had
one but I really don’t have one. We
only see the name of the one-ship
company anyway.” Tiger Group in former Hosco chartering arm NCS, together
with the apparent departure of
part of Hosco HK’s fleet to NCS and the unclear role of Golden
Lion, a chartering outfit established by former Hosco employees.
Tiger Group chairman Graham
Porter has downplayed the scale
of his investment and the connection with Golden Lion. But other
sources report that Tiger Group has
overtaken former chairman Gao
Yanming as an NCS shareholder. Meanwhile, in another small
sign of Hosco HK’s separation
from its former subsidiary, Hong
Kong sources tell that
NCS withdrew this week from the
Hong Kong Shipowners’ Associa-
tion (HKSA) and Hosco HK joined
in its place.
The exodus of Hosco HK staff
since last year has gone in several
directions. Besides Golden Lion,
which has recently been spotted
chartering former Hosco HK ton-
nage, another set-up involving
Hosco veterans is Smart Gain Shipping, a small Hong Kong operator
with an owned panamax that operates about 11 ships from handy-
max to capesize, Whose partners
include Captain Cui Lixin. Some others, including Yi Yuefeng, are thought to have gone to ore trader and operator Guo chuang.