Cosco Shipping Holdings Co. managed to increase profit in a volatile environment for freight rates and said uncertainty about tariff policies will continue to pose challenges for the industry.
First-half net income for China’s largest containership operator rose 3.9 per cent to 17.54 billion yuan ($2.46 billion), fueled by stronger high-value exports from China such as electric vehicles and lithium batteries, according to a Thursday filing.
Increased trade activity in emerging markets and continued restocking in Europe and the US also fueled growth, it said. Revenue from the transpacific route increased 2.1 per cent to 28.32 billion yuan.
“Looking ahead, the container shipping market still faces a complex and volatile environment,” the company said. “Various trade policies trigger chain reactions, geopolitical influences continue to emerge.”
Peers in the sector including Orient Overseas International Ltd. have also sounded warnings about US levies clouding the outlook, though signaled that shifting global trade patterns could bring opportunities to the shipping sector. China International Marine Containers Group Co. on Wednesday also flagged uncertainties surrounding US tariffs will impact short-term demand for containers.