Cosco has announced its shipping line could use nuclear power onboard merchant ships as part of green initiatives.

Speaking to local news sources in China, captain Wei Jiafu said the company is in talks with national nuclear authorities to develop nuclear powered ships, according to reports.

The company says 40% of the global newbuild orders should be cancelled or postponed up to next year to withstand economic downturn.

COSCO has already cancelled 126 bulkers and postponed the delivery of some boxships by one to two years.