Just a few days after the official announcement of the new merger between Chinese shipping lines, COSCO and China Shipping, China Cosco Shipping Corporation (COSCOCS) faces big challenges according to some shipping experts who forecast one of the toughest years for the maritime industry.
The consultancy firm Drewry expects a combined loss of $5 billion for the global shipping industry this year. Additionally, the shipping analyst Charles De Trenck said to Reuters that the new company must start to shrink in order to stay afloat.
COSCOCS in numbers:
-COSCOCS represents the 4th biggest container fleet
-$93,600 million in assets.
-$40 million in combined profits from COSCO and CSCL.
-4 entities were created based on: containers
, finances, terminals and oil-gas.
-7.7 percent share of the container
Even though the shipping line COSCOCS
has to date almost 180 thousand workers- which is more than double the workforce of Maersk- the enterprise dismissed layoffs or salary cuts. The market is also estimated to intensify pricing competition, based on previous post-merger experiences.
To know more about this topic, read the full article in Reuters website