Deliveries for the newbuildings are scheduled in 2015 and financial details of the deal were not disclosed.

Cosco Xiamen revealed that the company is taking advantage of China’s latest shipbreaking policy to renew its fleet. The ordering of new vessels would be followed by the phasing out of older vessels in its fleet, the Chinese firm said.

China’s ministry of transport announced in December 2013 a policy that will offer subsidies of RMB1,500 ($247) per gross tonne to shipping companies that scrap their vessels before their operational expiry dates.

The new general cargo vessels are expected to be deployed on the shipping routes from the Far East to Central and South America.