China Cosco Shipping Corp News

COSCO Shipping Holdings Co Ltd  said on Monday it has agreed to buy port assets from its parent for an aggregate 19.7 billion yuan ($2.7 billion) as it aims to build a global digital supply chain for its customers. The Chinese shipping group said it would buy 14.9% of Shanghai International Port (Group) from its indirect controlling parent China COSCO Shipping Corp Ltd for 18.9 billion yuan, and a 3.2% stake in Guangzhou Port for 778.7 million yuan. COSCO Shipping Holdings also…

“If consolidation was the solution to all that ails shipping, then container liner companies would be super profitable. They are not. In ‘commoditized’ sectors of the shipping industry, which by now includes pretty much everything apart from very small niche markets, there is hardly any economies of scale at the company level. As long as bigger is not in fact much better, then meaningful consolidation will not happen.”Dr. Roar Adland, visiting scholar at MIT Center for Transportation and Logistics and Professor at the Norwegian School of Economics (NHH).Like any other business…

Hong Kong-based container shipping and logistics service company Orient Overseas Container Line said that its revenue in 2018 increased by 9.9% to USD 5.96 billion for all services, compared to USD 5.42 billion reported in the previous year."Loadable capacity increased by 7.4%. The overall load factor was 0.8% lower than the same period in 2017. Overall average revenue per teu increased by 3.4% compared to the same period last year," it said in a press release.For the fourth quarter of 2018 (ended 31st December 2018), total volumes were 6.4% up from the same period last year.Total revenues increased by 13.5% to US Dollars 1,566.5 million. Loadable capacity increased by 6.1%. The overall load factor was 0.2% higher than the same period in 2017.

Cosco Shipping Ports saw third quarter throughput rise 16.6% to 23.10m TEU from 19.81m TEU in the previous corresponding period. "Driven by the growth of international trade and the supports from shipping alliances and shipping fleets of parent company, the Group’s total throughput recorded satisfactory growth," said a company statement. For the nine months ended 30 September 2017, the Group’s total container throughput rose 13.5% to 64,885,641 TEU (corresponding period of 2016: 57,165,661 TEU). For the three months ended 30 September 2017, the Group’s subsidiaries handled 18.9% (3Q2016: 19.6%) of the Group’s total throughput with a total of 4…

The port terminal operator division of China COSCO Shipping Corp. posted net profits of  US$384.7 million, an increase of  123.7% for FY 2017, compared with the corresponding period last year. Total throughput of the Group’s container terminals increased by 11.8% to 41,780,867 TEU for the six months ended 30 June 2017 (1H2016: 37,358,210 TEU); of which about 19.3% (1H2016: 21.1%) or 8,046,468 TEU (1H2016: 7,880,362 TEU) were handled by the Group’s subsidiaries; and the remaining 80.7% (1H2016: 78.9%) or 33,734,399 TEU (1H2016: 29,477,848) were handled by the Group’s non-controlling terminals. The throughput of the Greater China region accounted for 78.7% (1H2016: 83.0%) of the Group’s total throughput in the first half of 2017…

Cosco Shipping Holdings (CSH)has announced that its profit for 2016 will be below that of 2015, reports Reuters. The container shipping arm of state-owned China Cosco Shipping Corp expects to post a net loss of 9.9 billion yuan ($1.44 billion) for 2016, citing the impact of asset disposal and a weak freight market. On some trade lanes, including the high-volume route between Asia and Europe, average revenues per TEU in 2016 were at record lows. Cosco said that freight rates began to recover in the fourth quarter which likely helped it to a 700 million yuan fourth-quarter profit before interest and tax. The forecast full-year loss would be Cosco Shipping’s weakest annual performance since 2011 after the firm began restructuring last year in response to a prolonged market downturn.

Australia & New Zealand Banking Corp (ANZ) has agreed to sell its 20 percent stake in Shanghai Rural Commercial Bank (SRCB) for US$1.33bn. China Cosco Shipping Corp and Shanghai Sino-Poland Enterprise Management Development Corp had each agreed to acquire 10 percent of SRCB. The sale comes as the bank moves to shrink its business and scale back its presence in the region. ANZ said the sale will not have a meaningful impact on its balance sheet, with the price broadly in line with the value of the asset in ANZ's annual accounts. No comment was immediately available from China Cosco Shipping or Sino-Poland. State-owned China Cosco Shipping has amassed stakes in several Chinese banks and financial companies, says a report in FT.

China’s COSCO Shipping Development Co Ltd  announced a proposed nonpublic issuance of about 3.28 billion shares to specific investors, including its parent company, to raise up to 12 billion yuan ($1.79 billion), reports China Daily. COSCO Shipping Development will become a financing platform of its parent company－China Cosco Shipping Corp, the country's largest shipping company, according to its public statement. The company will use 6 billion yuan and 2.4 billion yuan from the proceeds for the capital injection into two of its subsidiaries, COSCO Shipping Leasing Co Ltd and Florens International respectively, while it will also use 1.8 billion yuan for the redemption of maturing corporate bonds and 1.8 billion yuan to refill the working capital of the company.

Algeciras Bay Port Authority in southern Spain has put up a tender for its third container terminal, and China's Cosco Shipping Ports is already being mentioned as a fore runner candidate, says a report by Caixin. According to port authority, Algeciras is Spain's biggest container port and oil importing dock, and handled 2.3 million 20-foot containers in the first half the year – a 13 percent year on year increase. Cosco Shipping Ports  Ltd., the port operating arm of state-owned China COSCO Shipping Corp., is the world's fourth-largest container operator by capacity. Its recent overseas shopping spree includes buying two-thirds of Piraeus…

China COSCO Shipping Corp Ltd and three partners, including France's CMA CGM SA, announced a new shipping partnership, OCEAN Alliance, formed to challenge 2M - the world's largest container carrier alliance. Other members of the new COSCO alliance are Taiwan-based Evergreen Line and Hong Kong's Orient Overseas Container Line. The partnership, called “Ocean Alliance”, would involve a fleet of 350 container ships and in a first stage cover more than 40 services. The carriers said: "The alliance will also bring service reliability and the most efficient integration of the latest vessels in a fleet of over 350 containerships. The partners plan to begin operations in April 2017 for an initial period of five years, CMA CGM said in a statement.

China COSCO Shipping Corp Ltd  (COSCOCS), a new company formed by the restructuring of China's top two shipping firms, was officially established on Thursday (February 18). The Chairman Xu Lirong said his company,now the world's largest bulk vessel and oil tanker operator by fleet size,  is planning to deploy more resources to six new businesses. According to a report in China Daily, the shipping major will focus on logistics, industrial equipment manufacturing, financial and shipping services, investment, and operations linked to the country's "Internet Plus" development program. "New businesses such as multimodal transportation, warehouse network development…

The merger between China Shipping group and the Cosco Group has given rise to a mammoth company that could trigger stability and extended consolidation in the global shipping industry, says a report in the WSJ. The merger will free the two Chinese shipping groups from competing against each other at home and abroad, in an industry swamped with oversupply and depressed freight rates. The new world leader in shipping industry is likely to own 832 ships including containers, dry-bulk vessels and tankers amounting to almost $22 billion. In comparison, AP Moller Maersk owns only 262 containers ships, which have a total value of $12.3 billion according to VesselsValue.com.