China Cosco hit by first half US$1.08 billion loss, but reve
Time: 2016-08-29 14:27
CHINA Cosco Holdings has been hit by a first half loss of CNY7.21 billion (US$1.08 billion) mostly from losing subsidiaries, despite a 2.6 per cent year-on-year increase in revenue to CNY29.63 billion.
"This was mainly due to loss on disposal of Cosco Bulk and FCHL of CNY2.4 billion," the China Cosco statement said.
FCHL leases and manages containers. The company added it did not receive government subsidy on vessel demolition during the reporting period.
The disposal of units is part of a restructuring programme with China Cosco becoming the container shipping unit of the merged China Cosco Shipping Corp (Coscocs).
Like the rest, China Cosco has been battered by low freight rates with average revenue per box down 23.9 per cent year on year.
"Despite the expected slowing growth of the capacity of global container fleet in the second half of 2016 and the pick-up of market demand with the traditional peak season in the third quarter, the overall oversupply of shipping capacity will continue to plague the container shipping industry, and the market situation will remain challenging," said the company statement.
"This was mainly due to loss on disposal of Cosco Bulk and FCHL of CNY2.4 billion," the China Cosco statement said.
FCHL leases and manages containers. The company added it did not receive government subsidy on vessel demolition during the reporting period.
The disposal of units is part of a restructuring programme with China Cosco becoming the container shipping unit of the merged China Cosco Shipping Corp (Coscocs).
Like the rest, China Cosco has been battered by low freight rates with average revenue per box down 23.9 per cent year on year.
"Despite the expected slowing growth of the capacity of global container fleet in the second half of 2016 and the pick-up of market demand with the traditional peak season in the third quarter, the overall oversupply of shipping capacity will continue to plague the container shipping industry, and the market situation will remain challenging," said the company statement.
