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Xinhua: Ocean Shipping Industry Suffered 80 Percent Loss

Xinhua recently reported that, according to the China Ship-owners’ Association, the Chinese ocean shipping industry suffered an 80% loss in year 2012. In year 2011, about 70 percent of the ship-owners suffered a loss. It is expected that the situation will continue in 2013. China Ocean Shipping (Group) Company (COSCO) reported an RMB 6.4 billion loss as of the 3rd Quarter of 2012. The company blamed the poor performance on the decline of the entire global economy. China’s tax rules for domestic shipping companies are a major factor in the financial loss as well. According to the report, the current ocean shipping market is at a 10-year low. The Chinese government has made a promise to the industry that it will announce positive policies in the first half of this year at the earliest. 
Source: Xinhua, January 21, 2013