Chinese Shipping Company Goes Bankrupt

Tuesday July 16, 2013

Chinese shipping company Anhui Wuhu Shihui Jianghai Shipping has gone into bankruptcy, Chinese shipping news site Sino Ship News reports.

Several of the company's ships received a bankruptcy notice while they were in operation, and some ships have been kept in custody or turned away by ports due to the company's failure to pay required charges.

"The boss of the company has run away and is nowhere to be found," the news site reports, adding that crew members of some ships are now seeking legal assistance.

The Anhui province-based company, established in 1989, operated almost 100 vessels with a total capacity of 160,000 dead weight tonnes (dwt), focused mainly on moving bulk materials on the Yangtze River.

Rough market conditions for Chinese bulk carriers have also had a big impact on the nation's shipbuilding industry in recent months, creating what China Rongsheng Heavy Industries Group Holdings Ltd. (Rongsheng) called "unprecedented challenges."