Li Jiahua, Secretary of the Board in Chang Jiang Shipping Group Phoenix Co., Ltd, announced in the board recently that the company has defaulted on the freight rate of five vessel, therefore, the whole company is facing financial crisis.

According to the announcement by Li Jiahua, Chang Jiang Shipping Group Phoenix has chartered five vessles from five oversea shipowners from 2009 and 2010, but it cannot afford the rate and its holding company Chang Jiang Shipping Group Phoenix also would not pay for it. Recently, the Phoenix tried to discuss with the shipowners cancelling the rate, but the owners said they are going to claim for the rate.