COSCO Shipping reports reduced profits

COSCO Shipping Holdings has reported reduced net profits of RMB 1,322 million (USD 189 million) for its container business segment in the first half of 2020, down from a profit of RMB 1,396 million last year.

costo shipping

Revenues for the segment – covering the group’s dual-brand fleet of COSCO Shipping Lines and OOCL* – were up nearly 4% at RMB 71,587 million. However, EBIT fell to RMB 2,797 million from RMB 3,383 million in 2019, while the EBIT margin fell from 4.9% to 3.9%.

Total liftings fell 5% to 11.8 Mteu in the first six months of the year, with COSCO Shipping Lines sustaining a bigger fall than OOCL, partly due to its mainland China activities. However, overall revenue from liftings rose 4.7%.

Overall, Trans-Pacific volumes were down nearly 4%, while Asia and Europe routes including the Mediterranean fell 6%. Asia region busi- ness, including Australia, fell 1%. However, revenue on these same routes rose 1%, 7% and 14% respectively.

In response to COVID-19, COSCO Shipping strengthened resource allocation in non-China markets. Non-China cargo volumes for the two brands rose to 38.6% in the period, up from 37% in 2019.

Source: Alpahiner

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