COSCO Shipping Holdings Co, the container shipping and terminal
operation unit of China COSCO Shipping Corp, has been ranked first in
terms of container handling during the third quarter of this year,
outshining Denmark's Maersk Line, according to global shipping
State-owned COSCO Shipping Holdings lifted 5.49 million TEU (20-foot
container units) in the third quarter, a 23 percent increase from the
same period last year, surpassing Maersk's 5.26 million TEU, according
to Alphaliner data published this week.
Dong Liwan, a shipbuilding professor at Shanghai Maritime University,
said the triumph came as China has been ramping up efforts to boost its
Eager to restore the country's earning ability in the global shipping
business, the government merged two State-owned shipping firms－China
Ocean Shipping (Group) Co and China Shipping (Group) Co to form COSCO
Shipping in 2016, to challenge the dominance of top players such as
Maersk Line and Switzerland-based Mediterranean Shipping Co SA.
"In addition, the fast goods exchange between China and markets
related to the Belt and Road Initiative had also contributed growth
momentum to COSCO Shipping Holdings' container service business," said
China's foreign trade volume rose 16.6 percent year-on-year to 20.29
trillion yuan ($3.08 trillion) in the first three quarters of this year,
the General Administration of Customs said.
COSCO Shipping Holdings reported that its net profit attributable to
share holders grew to 1.86 billion yuan in the first half of this year,
compared to a loss of approximately 7.17 billion yuan in the same period
a year ago.
"COSCO Shipping will use its abundant overseas resources in growing
new businesses, and provide support services from its overseas shipping
and port networks," said Sun Jiakang, deputy general manager of COSCO
Shipyards in China executed orders amounting to 35.15 million dead
weight metric tons in the first nine months of this year, an increase of
41 percent year-on-year, statistics from Beijing-based China
Association of National Shipbuilding Industry show. However,
Alphaliner's report warned though major carriers were lifting greater
volumes of boxes, it may not be translating into healthy returns.
"Carriers' inability to drive rates upwards during the seasonally
stronger third quarter despite robust demand growth and continued rate
weakness in October and November is expected to weigh down the earnings
performance in the fourth quarter of the year," said the report.