Weak Market Hits China Cosco
Weak demand in the global shipping market has led to a 7.9% fall in profits for Chinese shipping giant China Cosco Holdings, the country’s biggest shipping company, amounting to just under $4.7 billion in revenue H1, 2015, compared to the same period prior, according to the South China Morning Post.
This news follows the recent stock market crash, which is said to have an effort on the supply chain and dampen productivity.
Despite the group’s drop in revenue, its efforts in cost reduction and the optimisation in the structure of its client base and cargo sources worked to bring in net profit of 1.9 billion Yuan in the January-June, 2015 period.
The shipping line has recently announced plans, which were set out by the Chinese government, to merge operations with China Shipping in a bid to improve its service offering.
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