Cosco Shipping Earns Less amid Shipping Market Imbalance

Cosco Shipping International (Hong Kong) has seen its profit for the year ended December 31, 2016 plunge by 29 percent to HKD 236.5 million (USD 30.4 million) from HKD 362 million (USD 46.6 million) reported a year earlier.

Although the company’s operating profit dropped to HKD 544.2 million for the full year from HKD 690.7 million reported in 2015, Cosco Shipping International said that its revenue for the period increased to HKD 7.4 billion from HKD 5.9 billion.

In 2016, world economy has experienced deep adjustment, while international trade growth remained subdued. The international shipping market supply and demand remained unbalanced, while dry bulk shipping index and container freight rate index had hit a record low last year.

“Facing such severe business environment, Cosco Shipping International insisted on the working principles of ‘securing steady growth, ensuring profitability, and enhancing service quality and efficiency,’ and coped with the market changes proactively by improving service awareness, seeking new profit drivers and strengthening cost control, so as to maximise the profit,” according to the company.

Looking ahead, Cosco Shipping International said that the global economic growth in 2017 is expected to be faster than that in 2016, which will provide a stronger support for the shipping demand.

Although the overall imbalance between the supply and demand sides in the shipping sector still exists, it is expected to be relieved to a certain extent. The shipping market is on the rise and will become more rational, the structural recovery of the industry will further enhance market confidence, while further implementation of China’s “Go Global” strategy and “One Belt, One Road” initiative will present “enormous opportunities for Chinese shipping enterprises to develop new markets.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2020 >>
MTWTFSS
24 25 26 27 28 29 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Seawork 2020

Seawork is Europe’s leading commercial marine and workboat exhibition, providing businesses the opportunity…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

World Future Ports Summit 2020

This event will bring together ports and maritime shipping professionals from global leading companies and authorities to discuss recent digital technologies…

read more >

Europort Romania

Europort Romania is the premier maritime networking event of the Black Sea and will connect maritime technology and service suppliers with high level professionals from Romania and surrounding shipbuilding markets.

More info

read more >