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Bloomberg has reported that HNA Group is preparing to sell container leasing company Seaco for “about $1 billion”.

The box leasing sector saw fleet growth stalled by weaker demand and record disposals in 2016, with the demise of Hanjin Shipping a further setback.

Seaco has indicated it is happy with its integration of Cronos, and is looking for additional merger and acquisition opportunities. Seaco’s parent company Bohai leasing (itself part of the HNA Group) acquired Cronos in January 2015, catapulting Seaco into the world’s largest container leasing company by CEU (container equivalent units) with a fleet of 3.6M CEU – a 15% market share. “HNA Group (Bohai’s parent), is now a Fortune Global 500 company that is keen to grow further through mergers and a

The global box leasing industry suffered a significant setback during 2015, when it purchased proportionally fewer new dry freight containers than at any time since 2009.

Entering 2015 in relatively good shape, the container leasing industry accounted for the majority of new box investment in 2014, and the strongest fleet expansion. Whilst it has seen a slight recovery in utilisation, rate levels remain depressed.

The leasing industry committed to another substantial purchase of reefer containers in 2013, but new equipment per diems and cash returns remain at an all-time low.