State-owned China Cosco Holdings has announced the disposal of 17 vessels with a combined tonnage of 919,853 dwt.

The Chinese shipowner has sold four containerships and 13 dry bulk carriers to the scrapyards between September to December last year, fetching in RMB318.2m ($51.2m) but realising a loss of RMB123.86m.

The loss, however, would be offset by the government subsidies that the group received for sending their older vessels for demolition and ordering new ships.

At the end of September last year, China Cosco received a ship scrapping subsidy of RMB1.38bn.

China Cosco said that the fleet renewal plan has lowered the average age of its fleet and helped to improve fuel efficiency as well as raising the environmental friendliness of its operations.