Cosco Shipping Earns Less amid Shipping Market Imbalance
- Business & Finance
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.”