Cosco Shipping turns in $1.4bn 2016 loss

In line with the general malaise in the liner shipping market, the company however plunged to a RMB9.91bn loss from net profit of RMB469.3m in 2015.

In 2016, revenues from container shipping and related business rose 28% to RMB66.57bn up 28%.

The container shipping arm, Cosco Shipping Container Lines, with its expanded capacity, saw container shipping volume rise 54% to 16.9m teu.

The rate per teu from international routes however fell 12% to RMB4,141 per teu. Domestic trades did slightly better, with rates rising 3% toRMB1,581 per teu. Cosco added that its restructuring has brought about greater efficiencies of scale and cost synergies resulting in a 7% reduction in shipping cost per teu year-on-year.

Meanwhile revenues generated from the terminal and related businesses rose 8% to RMB3.76bn

Looking ahead, Cosco said that with many changes in the industry and an uncertain demand outlook "the overall operation in the industry will be focused on enhancing customer service quality and improving service products to make competition more reasonable".