COSCO Shipping Holdings, the container shipping and port arm of China Cosco Shipping Corp, has reported a decline in earnings for the first nine months of 2025. Despite weaker financial results, the company demonstrated operational resilience, supported by hopes that the latest China-US consensus could help stabilize global trade and shipping activity.
Earnings Impacted by Global Trade Slowdown
According to a company filing, COSCO’s total revenue fell by 4.1% year on year to Yuan 167.6 billion ($23.6 billion), while net profit attributable to shareholders declined 29% to Yuan 27.1 billion. The third quarter saw sharper declines, with revenue dropping 20.4% to Yuan 58.5 billion and net profit halving to Yuan 9.5 billion.
The company attributed the weaker results to continued freight rate volatility, trade uncertainty, and geopolitical risks. The China Containerized Freight Index (CCFI) averaged 22% lower in the first three quarters compared to 2024, with a steep 40% year-on-year drop recorded in the third quarter.
As of September 30, COSCO operated a fleet of 572 containerships with a combined capacity of 3.5 million TEU, maintaining its position among the world’s largest liner operators.
China-US Trade Consensus Offers Optimism
Investor sentiment has improved following a recent meeting between Chinese and US leaders, resulting in a trade consensus aimed at easing bilateral tensions. The agreement includes halving tariffs on China-related goods connected to the fentanyl issue and suspending reciprocal port fees for one year.
CITIC Securities analyst Wu Jialu noted that the suspension of port charges will lower operating costs for vessels calling at Chinese and US ports, estimating a reduction of about $260 per TEU. This measure is expected to ease trade bottlenecks and support transpacific cargo flows.
CITIC Securities also forecasted that the reduction in tariffs on Chinese exports could provide a short-term boost to shipping volumes, though long-term uncertainties remain.
While COSCO Shipping continues to face market challenges amid global trade volatility and geopolitical risks, the company’s steady operations and large fleet capacity position it well for recovery. The recent China-US consensus offers a ray of hope for improved trade flows and cost efficiencies, potentially stabilizing the sector as it navigates a difficult economic landscape.
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Source: Llyod’s List
