COSCO Shipping Holdings Releases Profit Forecast For 2021

Cosco Shipping Holdings expects to achieve a net profit of US$2.35 billion in the first quarter. This early indication indicates that the shipping company expects to have higher profits in 2021 than last year. This forecast is reliable.

The parent companies of Cosco Shipping and OOCL issued a profit warning to shareholders on Wednesday, saying that strong demand for Asian trade and rising freight rates will enable the company to achieve such high profits at the beginning of the year.

Sea-Intelligence Maritime Analysis pointed out in the recent "Sunday Spotlight" newsletter that by the second half of 2020, the bottleneck of ocean and land logistics will continue to affect the container shipping market this year, reducing the shipping capacity on the market and preventing the relocation of empty containers. , And push up the freight rate.

"It is clear to all market participants that the second quarter will continue to be affected by the same bottlenecks, especially as the Suez Canal blockage has prolonged the bottlenecks related to ship capacity and the repositioning of empty containers."

Container carriers predict that after 2020 full-year profits reach historical levels, profits in 2021 will be higher than last year. Prior to this, there were some very dire predictions in the second quarter of last year, when the lockdown of the new crown epidemic led to a significant drop in global freight volumes, and then rebounded to near historical highs throughout the third and fourth quarters.