Cosco Shipping Holdings said it is benefitting from the recovery in the container shipping market and is expected to turn in a RMB2.7bn ($426.5m) net profit for 2017, turning around from a RMB9.9bn loss the previous year.
“During the reporting period, the container shipping market continued to recover,” the group said in a stock market announcement, adding that the average China Containerized Freight Index (CCFI) at 820.08 points, was about 15% higher than the previous corresponding period.
The group also noted that after its massive consolidation and restructuring exercise, the capacity of its liner unit Cosco Shipping Lines expanded significantly and this was supplemented by the increase in delivery of new vessels.
“The layout of shipping routes were further optimized. The average income per unit and the cargo volume of the container shipping business increased as compared to the same period of last year and the operational benefits were enhanced,” Cosco said.
The group also noted that its ports subsidiary Cosco Shipping Ports implemented various strategies in terms of global expansion, network building and transformation and achieved “remarkable results“, unlocking value for the company and maintaining steady business development and a steady increase in operational benefits.
“During the reporting period, the company continued to deepen its reforms and strengthened the enhancement of quality and efficiency, and the synergy effects have become increasingly apparent,” Cosco concluded.