(Commonwealth_ COSCO Shipping Holdings recently reported robust growth across multiple areas of its business for the first nine months of 2024, despite a challenging global trade environment. Revenue from its container shipping business surged to RMB168.84 billion (approximately $23.70 billion), marking a notable 30.57% increase year-over-year. The company attributed this rise in revenue to a 9.07% increase in shipping volumes over the same period in 2023, highlighting sustained demand for its services despite ongoing volatility in global markets.
In addition to the strong performance in shipping, COSCO’s container terminal business also saw positive results. Total throughput for this segment reached 107.27 million twenty-foot equivalent units (TEUs), reflecting a 7.08% increase year-over-year. Revenue from the terminal business rose to RMB7.94 billion, up by 6.49% compared to the previous year. This growth underscores COSCO’s ongoing expansion and diversification within the terminal segment as it strengthens its role in the global supply chain.
COSCO has benefited from increasing cargo volumes in several high-demand sectors, reflecting shifts in global trade patterns and consumer needs. Cargo volumes related to photovoltaics, lithium batteries, automobiles, and cross-border e-commerce experienced considerable growth year-over-year, with increases of 31%, 20%, 17%, and 60%, respectively. These sectors, which are critical to green energy, automotive production, and digital commerce, have emerged as key revenue drivers for the company. This growth reflects both COSCO’s adaptability to global economic trends and its commitment to serving evolving customer needs across different markets.
An emerging and rapidly expanding area for COSCO is its digital supply chain, which has proven to be a new source of revenue growth beyond traditional shipping. Revenues from the company’s digital and logistics supply chain services (outside of ocean shipping) reached RMB30.71 billion, up by 19.66% year-over-year. By investing in digital solutions and expanding full-chain service offerings, COSCO aims to provide greater visibility and efficiency across the supply chain, thus addressing customer demands for agile and responsive logistics.
In a statement, COSCO emphasized its proactive strategy in the face of global economic uncertainty, outlining a focus on full-chain services, digital innovation, and green development. COSCO has dedicated itself to accelerating quality improvements, introducing measures for sustainable growth, and strengthening resilience to external challenges. This includes exploring new growth drivers that align with COSCO’s long-term goals and positioning it as a global leader in integrated logistics and sustainable shipping.
As of the end of Q3 2024, COSCO Shipping Holdings operated 436 shipping routes with a total capacity of 3.28 million TEUs. The company also managed 371 berths across 39 ports worldwide, along with 589 sea-rail routes, connecting domestic and international trade. This vast network enables COSCO to play a crucial role in facilitating global commerce while also providing the flexibility to adapt to shifting trade routes and demand patterns.
In line with its commitment to environmental sustainability, COSCO has been expanding its fleet with advanced, eco-friendly vessels. During the reporting period, the company placed orders for a range of container ships powered by methanol dual-fuel engines. This includes twelve of the world’s largest 24,000 TEU vessels, as well as four 16,000 TEU and twelve 14,000 TEU vessels. Methanol, which is emerging as a more sustainable fuel alternative for the shipping industry, aligns with COSCO’s green strategy and helps the company meet increasingly stringent environmental regulations.
Beyond new vessel orders, COSCO has also been retrofitting some of its existing container ships with methanol dual-fuel engines, enabling these ships to operate in green shipping corridors and meet future environmental requirements. Retrofitting provides a way for COSCO to reduce the carbon footprint of its current fleet, which is essential for complying with upcoming environmental regulations and advancing its sustainability goals.
