Shipping industry downturn pushes Cosco into red

Chinese shipping giant Cosco this week reported a net loss of $0.7bn for the first quarter of the year as the worldwide  shipping industry worldwide hit a new low on weak trade and falling commodities prices.
The company, which last month agreed to form the Ocean Alliance with France’s CMA CGM, Hong Kong’s Orient Overseas Container Line and the  Taipei-based Evergreen Marine to counter the effect of the industry’s protracted downturn in the industry, blamed the loss on a steady decline in rates due to “severe imbalance of supply and demand”.
During the first three months of the year, international freight rates on the Shanghai Containerized Freight Index (SCFI) fell 47% year on year to a 7-year low of 400.43. The  Baltic Dry Index was also down 41.6%  year on year.

Source: scmp