Cosco Shipping lost 1.44 billion USD in 2016

Cosco ShippingThe net loss of Cosco Shipping Holdings in 2016 amounted to 9.9 billion CNY (1.44 billion USD), according to preliminary assessment and non-audited finance statement. The Chinese largest shipping company explains the loss with the low growth in demand for container shipping in the world market, as well as the continuing oversupply of tonnage. Cosco Shipping Holdings noted that the industry’s efforts to balance supply and demand were proved as unsuccessful. As a result the weak market throughput and low growth of container traffic lagged behind the pace of traffic growth and costs. This continue to affect the finance statements and hurt the liquidity of the container shipping companies.

However, the statement noted that the restructuring of the business and synergies provided by the merger with China Shipping, allowed to improve performance from quarter to quarter. In the last quarter of 2016, the company expects operating EBIT of about 700 million CNY, excluding losses from the disposal of vessels.

Earlier this week, the Chinese company China International Marine Containers (CIMC) has issued a warning about the expected decline in profits by the end of 2016. According to preliminary data. The profit of China International Marine Containers will be from zero to half of the 288 million USD profit in 2015.