COSCO Shipping’s net profit for the first three quarters of 2018 has fallen by 53% compared with the same time in 2017, according to its latest results.
These results have come despite the company announcing that its revenues and gross profit increased by 21.5% and 3.16% respectively.
Its cargo volume also rose by 22.4% on the same period in 2017, and it also enjoyed an increase in its capacity growth.
The company, the third biggest shipping container line in the world, pointed towards an increase in freight rates, bunker prices and uncertainty caused by the US-China trade war for the fall in profits.
In addition, it also predicted that supply growth – currently at 5.9% - will slow down, potentially falling to 2.2% by 2020.
The results follow the company’s 1H 2018 profits dropping by almost 98% in August 2018, which followed the Chinese currency, the yuan, falling in value against the US dollar.
In October 2018, its port segment, COSCO Shipping Ports posted a profits increase of 46.6%, despite the effects of the trade war.
In a statement accompanying its results, COSCO said this: “From January to September 2018, revenue from operations of the Group amounted to $USD 12 billion representing an increase of $2 billion or 21.50% as compared to the same period of last year".