13 shipping companies lose total US$1.2b

The 13 A-share listed shipping companies suffered a loss of 7.8 billion yuan ($1.2 billion) in the first half of this year, the 21th Century Business Herald reported on September 11.

Although the third quarter is a traditional shipping busy season, the shipping enterprises' performance cannot improve much in the second half of the year because of an oversupply of ships, experts said.

They warned that rising fuel prices erode industry profits gradually, and shipping firms' hard times aren't over yet.

Only four companies of the 13 made a profit, including Cosco Shipping Co Ltd and China Merchants Energy Shipping Co Ltd, neither of which made much.

Cosco Shipping's 2012 semi-annual report showed that its operating income was 2.92 billion yuan in the first half of the year, up 18.76 percent year-on-year, with a net profit of 860,700 yuan, down 99.41 percent.

China Cosco Holding Co Ltd lost 4.87 billion yuan in the first half of this year, after a 1.71 billion yuan loss in the first half of last year, down 79.72 percent.

The company's accumulated earnings in the third quarter are expected to be in the red, according to China Cosco at its shareholders' meeting on August 30.