Restructuring Cosco Shipping hit by US$1.4 billion net loss
COSCO Shipping Holdings has posted a CNY9.9 billion (US$1.44 billion) 2016 net loss, having generated annual revenues of CNY71.2 billion, which increased 24 per cent year on year.
But the present state of the company is a result of last year's merger of Cosco and China Shipping, which makes year-on-year comparisons less meaningful.
The world's fourth largest container shipping line experienced its loss because of weak freight rates and restructuring costs, said Reuters.
The result was in line with a profit warning the company issued in January when it cited "slow growth in global container shipping demand and oversupply of shipping capacity" and said "the international shipping market still lacked solid improvement in addressing the imbalance in supply and demand."
Since the merger, Cosco has been restructuring, selling units, including Cosco Bulk Shipping and Florens Container Holdings, at a loss and focusing on container shipping.
Effective April 1, Cosco will be a member of the Ocean Alliance, a vessel sharing agreement on major east-west trades, which also includes CMA CGM of France, Evergreen Line of Taiwan, and OOCL of Hong Kong.