- Cosco Shipping’s 2024 revenue reached $33.29 billion, up 33.29%, with net profit rising 95% to $7.75 billion.
- Strong U.S. demand and Red Sea disruptions increased freight rates and absorbed excess capacity.
- Rising U.S. tariffs and port fees may raise costs and affect future profits.
Cosco Shipping Holdings, China’s largest container shipping line, recorded substantial revenue and profit growth in 2024. The company reported an operating revenue of $33.29 billion, reflecting a 33.29% increase compared to the previous year. Meanwhile, earnings before interest and taxes (EBIT) soared 90.74% to $9.79 billion.
Net profit surged 95% to $7.75 billion, with $6.87 billion attributed to shareholders, a 105.78% increase year-over-year.
Factors Driving Growth
Cosco, the world’s fourth-largest container carrier (OTC: CICOF), benefited from durable consumer demand in the U.S. and supply chain disruptions caused by the Red Sea crisis. As many shipping lines rerouted vessels onto longer, more expensive routes, this helped absorb excess capacity and drive up freight rates, significantly improving profitability across the industry.
Challenges in the U.S. Market
Despite record profits, Cosco faces regulatory challenges in the U.S., including trade tariffs and proposed port fees on Chinese vessels. These additional costs could add tens of millions of dollars to the company’s operating expenses, posing a risk to its future profit margins.
Cosco’s Role in the Ocean Alliance
Cosco is a key member of the Ocean Alliance, alongside its Hong Kong-based subsidiary Orient Overseas Container Line (OOCL), as well as France’s CMA CGM and Taiwan’s Evergreen Marine. This strategic partnership allows Cosco to optimize its shipping network and enhance operational efficiency amid evolving global trade dynamics.
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Source: Yahoo Finance
