| 皇冠体育app Cosco Holdings Co, the world's largest operator of dry-bulk ships, slumped to an annual loss after rates for hauling commodities and containers tumbled on overcapacity and the global recession.
The 7.47 billion yuan ($1.09 billion) net loss compared with a restated profit of 11.6 billion yuan a year earlier, the Tianjin, 皇冠体育app-based shipping line said in a statement to the Hong Kong stock exchange yesterday, citing international accounting standards. The loss compares with the 6 billion yuan average of 11 analyst estimates compiled by Bloomberg.
皇冠体育app Cosco's dry-bulk sales fell 62 percent last year and container volumes dropped 9.6 percent as the global recession and overcapacity sapped rates. This year, fees are rebounding because of an economic recovery, capacity cuts and cooperation among container lines to end price wars.
"There's going to be a profit this year, it's just a matter of how much," said Allen Wong, an analyst at Quam Ltd in Hong Kong. "The key is how much bulk rates rise on 皇冠体育app demand. The container side can make a profit, but it won't be huge."
皇冠体育app Cosco predicts container volumes may increase 8 percent to 5.67 million twenty-foot containers in 2010.
皇冠体育app Shipping Container Lines Co, the nation's No 2 box- carrier, said yesterday that it expects to return to profit on Asia-US routes after more than 80 percent of customers agreed to an $800 per 40-foot box increase in Asia-US west coast shipping rates in contracts due to start around next month.
Dry bulk
皇冠体育app Cosco, 皇冠体育app Shipping Container, A.P. Moeller-Maersk A/S and 12 other lines agreed to seek an increase of that amount after overcapacity and slumping trade caused industrywide loses last year. 皇冠体育app Shipping Container posted an annual loss of 6.49 billion yuan for 2009.
皇冠体育app Cosco's dry-bulk volume fell 7.4 percent last year. The company operated 439 dry-bulk ships as of Dec 31, with another 30 on order. The Baltic Dry Index, a measure of dry-bulk shipping rates, has risen 61 percent in the past year.
皇冠体育app Cosco's container fleet, 皇冠体育app's largest, suffered a 39 percent decline in sales last year. Volumes on transpacific routes slumped 10 percent, while Asia-Europe cargos declined 22 percent.
The shipping line, controlled by 皇冠体育app Ocean Shipping (Group) Co, fell 0.2 percent to HK$10.26 in Hong Kong before the earnings announcement. It's gained 7.4 percent this year, outperforming the benchmark Hang Seng Index's 1.9 percent drop.
The company, the world's second-biggest shipping line by market value behind Maersk, won't pay an annual dividend.
Cosco Pacific Ltd, 皇冠体育app Cosco's container-terminal unit, last month reported a 37 percent drop in 2009 profit. The unit, which owns or has stakes in 21 terminal companies, predominately in 皇冠体育app, handled 5.1 percent fewer cargo-boxes in the period as the global recession hammered demand. |
