Wednesday , 19 September 2018
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COSCO Shipping Lines volumes up 12.4%

COSCO Shipping Lines reported a 12.4% year-on-year increase in throughput in the first of half 2018, citing economies of scale and improved management as volumes hit 11.24m teu.

The carrier also announced a 15.8% increase in capacity, which hit 2m teu for the first time, and at the end of June 2018 the company’s fleet totalled 393 container vessels.

The company has utilised approximately 60% of its fleet size, around 189 vessels and 1.25m teu, along the routes of the Belt and Road Initiative, where the company has 274 berths under operation.

When including the capacity of the recently acquired Orient Overseas (International) Limited (OOIL), COSCO Shipping Holdings is now ranked third in the world for shipping capacity with over 2.7m teu.

It is the largest merger and acquisition in the global shipping industry so far in terms of the size of the transaction and COSCO will implement a dual-brand strategy.

COSCO Shipping Holdings’ revenue generated from container shipping and related business amounted to RMB42.4bn (US$5.2bn), which is a 1.29% increase on last year’s figure.

The increase in container shipping revenue was lower than heavy container volume, mostly due to the downward pressure of the market freight rate and the decrease in the average exchange rate by 6.75% for the USD.

COSCO Shipping Holdings reported a net profit of RMB40.8m (US$6m), which it attributed to container shipping business and the profit contribution of the terminal business. Over the same period last year, the company reported a net profit of RMB1.9bn (US$278.4m).