COSCO Reports USD 1.6 Billion Profit, Focuses on Emerging Markets
COSCO Group, listed in Shanghai and Hong Kong, posted strong operating profits of RMB 12.7 billion (USD 1.6 billion) from its container operations in the second quarter, marking a 10% increase compared to the same period last year and a 55% rise from the first quarter of this year. The group’s revenues also surged to RMB 50.9 billion, its highest in six quarters and nearly 20% higher than a year ago.
Despite the revenue increase, the corresponding expenses rose at a slower pace, as COSCO maintained stable voyage costs and reduced vessel costs by 11%. The group added 256,000 TEU to its fleet over the past year.
In the quarter, COSCO recorded strong liftings of 6.4 MTEU, up from 6.0 MTEU in Q1 2024 and 5.9 MTEU in Q2 2023. The group noted the positive effects of inventory restocking in the US and Europe, along with increased volumes in emerging markets. Average rates on international routes rose to USD 1,247 per TEU, up from USD 1,047 a year earlier.
COSCO remains cautiously optimistic about the second half of the year, expecting a gradual recovery in traditional markets in Europe and North America, alongside faster growth in emerging markets. This year, the group launched new services from the US West Coast to the West Coast of South America, as well as direct routes from Tianjin to the East Coast of South America, Yangpu to Abu Dhabi, and from Dalian to Mexico. It also enhanced its services from China to Vietnam and East Africa. Including both its container brands, COSCO SHIPPING Lines and OOCL, the group achieved an operating margin of 24.9% for the quarter, placing it at the higher end of the industry.
