Cosco’s box shipping division recorded surging revenues and profits last year, on the back of strong volume gains.
Recording a year-on-year 10.12% uptick in volumes, to 25.9m teu, Cosco Shipping outpaced the average market growth rate of 6%, and reported a 34.4% jump in earnings, to $31.1bn.
The Chinese carrier said: “In 2024, the container shipping market saw moderate growth in cargo volumes driven by a gradual recovery of global trade. Meanwhile, the ongoing turmoil in the Red Sea, resulted in an overall shortage of effective capacity supply and relatively high freight rates. In this context, Cosco actively grasped the market opportunities.”
Cosco Group revenue showed a similar growth rate for the year, up 33.2% on 2023, to $32bn, prompting a 90.7% upswing in Ebit, to $9.6bn, with net profit skyrocketing 105.7%, to $6.7bn.
And the results for the container terminals business were also up, albeit having risen at a slower pace, with growth in volumes up 6%, to 144.3m teu, and revenue up, 3.9% to $1.5bn for the year.
Despite the strong performance last year, the carrier believes it is facing strong headwinds with the return of Donald Trump to the White House.
Last month, proposals were made by US trade representative Jamieson Greer to hit Chinese carriers with a $1m fee for each US port call – together with a $1.5m fee for Chinese-built vessels, regardless of flag or operator – building on the tariff anxiety.
Cosco noted that “the conditions in container shipping industry will remain complex and volatile”.
It added: “On the one hand, greater geopolitical impact, uncertainty in the Red Sea, stronger trade tariff policies will bring profound changes in global cargo flow patterns. On the other, the resilient global economy, the rise of emerging markets, and regional economic integration will create new opportunities for container shipping market.”