COSCO Shipping, the multipurpose vessel unit of state major China Ocean Shipping, recorded a 27.5% gain in total shipments to 6.2m dwt in the January-July period, as it continued to expand shipping capacity despite the industry downturn.
According to a monthly update, the Shanghai-listed firm shipped nearly 1.8m tonnes with its general cargoships during the seven months, up 111% from a year ago.
Its heavylift vessels carried 582,504 tonnes in the same period, showing a 29.7% year-on-year gain.
COSCO Shipping, the multipurpose vessel unit of state major China Ocean Shipping, recorded a 27.5% gain in total shipments to 6.2m dwt in the January-July period, as it continued to expand shipping capacity despite the industry downturn.
According to a monthly update, the Shanghai-listed firm shipped nearly 1.8m tonnes with its general cargoships during the seven months, up 111% from a year ago.
Its heavylift vessels carried 582,504 tonnes in the same period, showing a 29.7% year-on-year gain.
Shipments of Coscol’s multipurpose vessels, which make up the bulk of its fleet, increased 9% on year to 3.4m tonnes in January-July.
However, the average utilisation rate of its fleet was at 96.7% in this period, down 0.9% on year.
The company is well on track to exceed its target of 8% growth in shipments this year, securing market share despite unsatisfactory rates.
The strategy will pave the way for a healthy recovery later once rates recover and bunker costs fall, according to analysts.
“Coscol is mainly engaged in specialised cargo shipping and its profitability is generally more stable than conventional shipping,” Wuhan-based Changjiang Securities said in a research note.
It also pointed out that bunker prices in the third quarter had been 8% lower to date than in the second quarter. If the trend continued, Coscol’s income might improve in the third quarter.
Weighed down by weak rates and expensive bunker, the company’s net profit attributable to shareholders fell 99.5% on year to Yuan704,100 ($110,500) in the first half of this year, preliminary results showed.
Coscol is due to release formal results on August 28.
Discussion about this post