CHINA Cosco Holdings has said it is negotiating with yards to delay or cancel orders for new ships, but did not reveal the scale of its intentions, Bloomberg reported.

"The prospect for the dry-bulk shipping market remains dim," the shipping line said in an emailed statement.

Cosco anticipates a 44 per cent drop in dry bulk cargo with the slow down in the steel industry and its demand for iron. Other shipping lines have reportedly cancelled orders for 260 vessels worldwide, according to Lloyd's Register.