Greg Knowler of the Journal of Commerce is reporting that Cosco Shipping Holdings warned investors Wednesday to expect an almost 80% drop in full-year 2023 operating profit, citing the challenges of excess capacity, geopolitics, and plunging rate levels. Knowler writes:
The supply-demand imbalance that built steadily through 2023 has clearly brought the two-year bull run of profitability enjoyed by the container shipping industry to an end, something that will likely be reflected in the coming financial results from Cosco’s peers.
In a note to the Hong Kong and Shanghai stock exchanges, Cosco, the parent company of Cosco Shipping and OOCL, said its anticipated earnings before interest and taxes (EBIT) of $5.1 billion for…
Read more here.
