zoomImage Courtesy: China Cosco Holdings

Hong-Kong listed shipping and logistics company China Cosco Holdings Co (CCHC) has reported a major rise in its net loss from CNY 1 billion (USD 154.1 million) seen in the quarter ended March 31, 2015, to CNY 4.5 billion (USD 690 million) in the corresponding period this year.

The loss was mainly attributed to a weak demand in the container shipping market as the company’s container shipping business recorded a loss of approximately CNY 1.377 billion.

The overall demand and supply remained imbalanced and freight rates in the market showed a general downward trend. In mid-March of 2016, freight rates of the major routes of international liners hit the bottom for the recent five years, China Cosco Holdings said.

Furthermore, the loss was assigned to the disposal of 100 percent equity interests in China COSCO Bulk Shipping Co., and 100 percent equity interests in Florens Container Holdings Limited, as well as to an imbalance of supply and demand in the dry bulk shipping market and low levels of freight rates, which affected the company’s profit.

China Cosco Holdings’ operating revenue for the quarter stood at CNY 14.6 billion, a drop of 19 percent compared to CNY 18.2 billion recorded in the same period in 2015.

During the quarter, the container shipping volume increased by 14.8 percent to 3.02 million TEUs, primarily due to the material asset restructuring.

The company chartered and operated the container vessels and containers owned or operated by China Shipping Container Lines Company Limited and its subsidiaries from March 1, 2016, China Cosco said.

Regarding the company’s dry bulk shipping business, a decrease of 14.3 percent was recorded in the period from the beginning of the year to the end of February, as the volume dropped to 23.2 million tons compared to the same period a year earlier.

The company’s terminal business handled a total throughput of 22.2 million TEUs, a slight increase of 2.9 percent from last year’s numbers.

At the end of the quarter, China Cosco Holdings’ long-term loans amounted to CNY 29.5 billion, 48.68 less than they were at the beginning of the year.