China Cosco plans to cancel or postpone some of its ship orders, according to a report by the Financial Times. Some industry analysts had expected the state-owned shipping line to increase its order book to support China’s troubled shipyards.

The company said it was in negotiations with shipyards over delays and cancellations of dry bulk ships. The 58 ships that Cosco has on order would expand its dry bulk capacity by more than 20 per cent. In container shipping, it wants to delay until 2010 delivery of the largest three of the nine ships it is due to receive this year.

The company, the world’s biggest operator of dry bulk ships, made pre-tax profits of Rmb15.7bn in 2008, down from Rmb26.1bn in the previous year, on revenue up to Rmb131bn from Rmb112bn.