Cosco reported net profit of 37.7 million USD in Q1 2017

CoscoThe largest Asian container line China Cosco Holdings reported net profit of 260 million CNY (37.7 million USD) for the first quarter of 2017, against a loss of 4.4 billion CNY during the same period last year. The company explained the improvement in the finance statement with the 54% increase in volumes to 4.65 million TEU, as a result of the merger with China Shipping Group and synergies after it, as well as recovery in the container shipping market. The finance report of China Cosco Holdings indicates that the average rate of China Containerized Freight Index (CCFI) for the first quarter was 825.3 points, which is 11.7% more than the same period last year, supporting the revenues of the company.

China Cosco Holdings was established in March 2016 as a container carrier and terminal operator in the structure of China Cosco Shipping Corporation, formed as a result of the merger of the state-owned China Cosco Group and China Shipping Group. The merger was initiated by the Chinese government as part of measures to reorganize industries suffering from excess capacity, with the goal of increasing the competitiveness of national operators in global markets.

In early April, Cosco Shipping’s container fleet consisted of 319 vessels with a total capacity of 1.73 million TEU, compared to 312 vessels with a throughput capacity of 1.65 million TEU at the beginning of the year. The company has the largest portfolio of orders – 32 container ships with a capacity of 0.533 million TEU.