- OOII envisages a profitable year in the global container shipping industry.
- A recovery in 2017 which swung a net profit of $429.42 million, shows the way.
- The chinese shipping giant COSCO sees a huge opportunity as the market recovers.
- It has already witnessed a revenue of 90.4 billion yuan till january, a steep rise from last year’s revenue collection.
Recently, Hong Kong peer Orient Overseas International Ltd (OOII) reported a profitable year, indicating a recovery in the global container shipping industry and this has leveled up the hopes of shipping giants like COSCO. In a report published by the marinelink.com, COSCO Shipping Holdings Co Ltd said, it expects further growth in container shipping demand thanks to a continued recovery in global trade, which swung the net profit of $429.42 million for 2017.
Shipping saw signs of improvement in 2017 after enduring its longest ever slump wrought by overcapacity and slow economic growth, but a drop in freight rates in the second half raised concerns about the sustainability of the rebound. “Benefiting from the continual recovery trend of the global economy and trade, the growth of container shipping demand is expected to be strongly supported,” COSCO said in a statement on Thursday.
Caution on large vessels
The company cautioned, however, that the market would see the delivery of large vessels in 2018 and that overall growth might not be as strong as compared to last year given “a high base”. The Chinese shipping giant said the jump in its annual profit from a net loss of 9.9 billion yuan in 2016 was helped by an overall recovery in the sector and subsidies received for demolition of ships.
Revenue estimation
In February, the CEO of the world’s largest container shipping firm, Denmark’s AP Moeller Maersk A/S, said he was “very optimistic” on the fundamentals of the industry
COSCO’s earnings were in line with the estimate the company provided in January. COSCO recorded revenues of 90.4 billion yuan for the period, almost 30 percent higher than the previous year. OOIL, which is being acquired by COSCO for $6.3 billion to become the world’s third-largest container shipping line, earlier this month reported full-year profit of $137.7 million, versus a loss of $219.2 million in 2016.
So, the situation looks quite optimistic despite a slow start.
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Source: MarineLink
