Companies

COSCO returns to profit on recovery of freight rates

(Agencies)
Updated: 2010-08-26 17:10

China COSCO Holdings Co, Asia's largest shipping line by market value, returned to profit in the first half as an economic rebound revived rates for hauling commodities and containers.

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Net income of 3.45 billion yuan ($507 million) compared with a loss of 4.6 billion yuan a year earlier, the company said in a statement late yesterday, citing international accounting standards. China Shipping Container Lines Co reported a 1.17 billion yuan profit, compared with a year-earlier net loss.

China COSCO's first-half sales rose 56 percent to 45.5 billion yuan. Dry-bulk revenue surged 51 percent to 16.8 billion yuan. The company, with a fleet of 449 commodity ships, had bookings for 70 percent of 2010 operating days as of June 30.

The company's container fleet, China's largest, had a 25 percent increase in first-half volumes. Transpacific cargoes grew 52 percent, with an 88 percent jump in revenue. Asia-Europe shipments rose 9.9 percent, with revenue more than doubling.

China's largest operators of container vessels both ended 18 months of losses as US and European retailers boosted imports of Asian-made toys, furniture and clothes after last year's recession. China COSCO, the nation's largest operator of dry-bulk ships, also benefited from a 49 percent jump in commodity-freight rates as China's economic growth stoked demand for raw materials.