China's COSCO performance increases nearly 176% shipping industry situation still poor

Buoyed by the recent rebound in the Baltic Dry Bulk Index (BDI), shipping giant Cosco China (601919) released its 2010.5 annual report, with a net profit of 3.52 billion yuan, a big increase of 175.86% per cent year-on-year. Cosco expects a significant improvement in container business performance in 2010 and a full-year consolidation business that is expected to make a profit.　　Because the BDI index has been maintained at a high level of more than 2,500 points, the company's high lock part of the freight rate greatly reduced the impact of fluctuations in shipping prices. It is understood that the 2009 China Ocean (601919) net profit for a huge loss of 7.541 billion yuan, ranked central enterprises listed companies in the first loss list.　　But the first quarter of this year, the company's strong results, achieve a net profit of 882 million yuan, ending up to five consecutive quarterly losses.　　Benefiting from the global maritime trade and the overall recovery of the shipping market, a number of shipping companies have handed over a bright semi-annual report, in which long aviation oil (600087) has increased by nearly 490% of the big profits of 2010 years at the top of the shipping giants. The shipping industry remains concerned about trends that are still facing downside risks to profits in the second half of 2010. China Merchants (601872) and other shipping giants said the shipping industry is cautiously optimistic about the development situation.　　Since July, the oil tanker spot market VLCC tariff has fallen sharply, is expected to have a greater impact on the three quarter results, the company is optimistic about the four-quarter peak season freight rate is expected to rebound. Wu Yunying, an analyst with the Changjiang Securities and shipping industry, told reporters that shipping cycle performance would fluctuate in the recovery. In the container transport, from the order data, 2010 4 Quarter of the freight volume fell, no doubt, if the European and American line tariffs will face loss risk. Shipping industry in the next 2-3 years are in the "go to the productive" process, but the "go-to-productivity" is expected to be the first to complete. It is expected to 2011: The average price of freight and 2010 basically flat, the company through the increase in business volume (amplitude 8-10%) to achieve sustained growth in performance, may create a historical profit record.