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COSCO Shipping Says Container Shipping Demand to Remain Buoyant in 2018

 COSCO Shipping Holdings Co Ltd said it expects further growth in container shipping demand thanks to a continued recovery in global trade, after reporting it had swung to a net profit of 2.7 billion yuan ($429.42 million) for 2017.

COSCO’s optimism, which comes after Hong Kong peer Orient Overseas International Ltd (OOII) reported a profitable year, indicates that a recovery in the global container shipping industry could be here to stay. 

After a long slump on account of overcapacity and sluggish economic growth, shipping saw some indications of improvement in 2017; however, the continuous growth could not be hoped for as there was a drop in freight rates in the second half. Shipping continued as volatile as ever.

COSCO said in a statement on Thursday 30 March 2018, “Benefiting from the continual recovery trend of the global economy and trade, the growth of container shipping demand is expected to be strongly supported.”

The company however drew attention to the delivery of large vessels in 2018 just to point out that the overall growth might not be as strong as compared to last year.

Accounting for its jump to annual profit from a net loss of 9.9 bn yuan in 2016, it attributed it to overall recovery in the sector and subsidies received for demolition of ships.

Its earnings were in line with the estimate the company presented in January. COSCO recorded revenues of 90.4 billion yuan for the period almost 30 percent higher than the previous year.

.Orient Overseas International Ltd (OOIL), being acquired by COSCO for $6.3 billion to become the world’s third-largest container shipping line, earlier this month reported full-year profit of $ 137.7 million as against a loss of $ 219.2 million in 2016.

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