China 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.
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 an analyst in Hong Kong. “The key is how much bulk rates rise on China demand. The container side can make a profit, but it won’t be huge.”
From Bloomberg, April 22, 2010