Cosco Shipping weathers earnings storm as port fee suspension brings hope

COSCO Shipping Holdings, the containership and port arm of China’s state conglomerate China Cosco Shipping Corp, reported weaker earnings for the first nine months of 2025, but showed steady operating resilience, as hopes rise that the latest China-US consensus could ease pressure on global trade and shipping.

The container shipping sector saw sustained rate fluctuations this year, driven by the ongoing impact of tariff policies, heightened geopolitical risks, and softening global trade demand, the company said in a filing to the exchange.

It noted that the average China Containerized Freight Index for the first three quarters of 2025 was 22% lower than a year earlier, while the drop in the third quarter alone was nearly 40% year on year.

Cosco’s total revenue slipped 4.1% year on year to Yuan167.6bn ($23.6bn), while net profit attributable to shareholders fell 29% to Yuan27.1bn.

During the third quarter alone, earnings were hit harder, with revenue down 20.4% to Yuan58.5bn and net profit halving to Yuan9.5bn.

As of September 30, the company operated 572 containerships with an aggregate capacity of 3.5m teu.

With operational results in place, market watchers are now focusing on the recent China-US trade agreement, which may ease costs and support transpacific trade.

Following yesterday’s meeting between the Chinese and US leaders, Beijing announced that it had reached a consensus with Washington, including halving tariffs to 10% on China‑related goods linked to the fentanyl issue and suspending reciprocal port fees between the two sides for one year.

CITIC Securities analyst Wu Jialu said the suspension of port charges had reduced operating costs for affected vessels.

She added ships calling Chinese or US ports under the policy will see costs fall by roughly $260 per teu, helping to avoid delays and disruptions in cargo flows.

CITIC Securities believes lower tariffs on Chinese exports to the US will provide a short-term boost to shipments.

Nevertheless, Cosco still warned that the markets remain challenging, with geopolitical tensions and trade uncertainties continuing.