China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, said it probably posted a loss for the first half of the year as rising fuel costs eroded profits.
China Cosco, based in Tianjin municipality, said the loss was caused by the “prolonged high fuel price under the declining international freight market,” according to a statement to the Hong Kong stock exchange today. First-half profit was 3.45 billion yuan ($540 million) last year, it said.
Fuel prices advanced 28 percent this year through yesterday, according to data compiled by Bloomberg. Nippon Yusen K.K. and Mitsui O.S.K. Lines Ltd., Japan’s two largest shipping lines, slashed their annual profit forecasts last month amid falling rates and rising fuel costs.
Container-shipping rates have fallen on Asia-U.S. and Asia- Europe routes as the global fleet expands and demand cools. The global fleet of dry-bulk carriers will also grow 13 percent this year, outpacing a 4 percent increase in traffic, according to Clarkson Research Services Ltd., a unit of the world’s largest shipbroker.
The Baltic Dry Index, a benchmark for commodity-shipping rates, dropped 0.3 percent to 1,264 yesterday, extending its loss to 25 percent this year.
