Despite decreased in volume, COSCO's revenue still grew by 37% in the first 9 months
During the first nine months of 2022, COSCO's volumes fell to 18.5 million TEU from 20.4 million TEU the previous year, but revenue increased 37% year-on-year to $44.46 billion and net profit increased 48% to $16.2 billion.
Container ship of COSCO shipping line (Photo: Cosco Shipping Lines)
Cosco Shipping Holdings Deputy Gerneral Manager Chen Shuai spoke at a press conference last week to discuss Cosco Shipping Holdings' financials for the first nine months of 2022.
During this time, container shipping volumes fell to 18.5 million TEU from 20.4 million TEU the previous year, but revenue increased 37% year-on-year to $44.46 billion and net profit increased 48% to $16.2 billion.
“Shipping line profit margins have been better than in 2007, but the orderbook-to-fleet ratio is nowhere near the 64% seen in 2008,” said Mr. Chen.
“Many of the newbuildings that will be delivered in the next two years are in the 5,000-15,000 teu range, and these will be used to optimise and upgrade the fleet structure.”
As shipping lines achieve all-time high profits due to logistics bottlenecks and port congestion related to Covid-19. Shipping lines placed a record 561 new boxships orders last year, more than quadrupling from 2020.
Cosco Shipping Holdings, the parent company of Cosco Shipping Ports, Cosco Shipping Lines and OOCL, has ordered 42 vessels, including Cosco Shipping Lines and OOCL orders for more than a dozen 24,000 TEU vessels in October this year, and 20 vessels have already been placed. Ordered in September and October last year. The new ships will be delivered between 2023 and 2025.
Mr. Chen said Cosco will adjust its vessel capacity according to market demand - currently, train operators are canceling many sailings to cope with weakening cargo volumes.
He added: “Amid increasingly stringent environmental regulations, the scrapping of older vessels and slow-steaming could provide some restriction on effective vessel supply, and this will help maintain the weak supply-demand balance.”
Without disclosing whether shippers were looking to renegotiate long-term shipping contracts, Chen said Cosco Shipping had "communicating with contractual counterparties to comply with their wishes".
To improve port access, Cosco Shipping Holdings will increase its stake in Shanghai International Port Group to 15.55% by year-end and investments in infrastructure, such as trailer platforms, warehouse and logistics center, to improve the group's container logistics capabilities.
- Cosco Shipping cooperates with FAW Group to develop the automotive supply chain
- German government approves COSCO's investment in Hamburg container terminal
- COSCO Shipping orders to build 15 new methanol-powered container ships worth USD 3 billion
Source: Phaata.com (According to The Loadstar)