CHINA Cosco Holdings, a listed affiliate of China’s largest shipping company, China Ocean Shipping (Group), is pressing ahead with cost-saving measures by adjusting the carrying capacity of its fleet and adopting slow-steaming, returning charter-in vessels and delaying new deliveries, according to president & executive director Zhang Liang.

Mr Zhang said the company would control its carrying capacity by postponing new ship deliveries.

The company had slashed its container fleet’s carrying capacity by 1.7% to 561,038 teu in 2009 against 570,786 teu in the previous year.

He echoed earlier sentiments that the resurgence of global container demand helped the company return to profit in the first quarter.

Mr Zhang said the company was planning to open routes for developing countries such as Vietnam this year in order to take advantage of the fast-growing economy.

Last month, China Cosco Holdings executive vice-president Sun Jiakang said that the company would continue to optimise its fleet structure in an effort to withstand overcapacity in the shipping market, adding that the company would push back new vessel deliveries as well as charter out some tonnage this year.

At the same meeting, China Cosco Holdings chief financial officer He Jiale said the company would reduce its capital expenditure for 2010 by 11.6% to Yuan10.1bn ($1.5bn).

The war chest included Yuan1.3bn for buying containerships and Yuan3.6bn for purchasing bulk cargo carriers.

China Cosco Holdings will take deliveries of nine containerships with a total of 45,925 teu and charter another six boxships comprising 46,981 teu this year, according to the company’s annual result.

Last week, the company released its first-quarter results that showed a 126.4% year-on-year surge in net profit to Yuan882m while operating revenue rose 58.7% to Yuan17.4bn