The exceptional unit costs rise reported by OOIL for 21H2 shocked many analysts. What may have gone unnoticed are the oversized provisions booked not only for its commitment to Long Beach Terminal but also other OPEX and employee compensations
Cosco’s relatively depressed earnings for 21Q4 and 22Q1 are due to the substantial provisions booked over the past two quarters. By end of 22Q1, Cosco’s short term payables account has ballooned to Rmb69bn, which is a significant amount for Cosco’s 22Q1 operating expense was only Rmb67bn.
COSCO and OOCL will launch a new A3 Express (A3X) service connecting Shanghai, Shekou, Brisbane and Sydney from 31 May 2022. The new service will complement COSCO and OOCL's existing services linking North East Asia with Australia’s east coast that is currently provided through the A3N, A3C and A3S services: A3N Rotation: Yokohama, Osaka, Busan, Qingdao, Shanghai, Kaohsiung, Melbourne, Sydney, Brisbane, Yokohama A3C Rotation: Shanghai, Ningbo, Melbourne, Sydney, Brisbane, Kaohsiung, Xiamen, S
Cosco's profit margin dropped in P&L but rise in the cashflow during 21Q4. Much of the expenses were booked into payables, leading to extraordinary fall in working capital relative to its peers.
CMA CGM and COSCO will revise its joint service on the trade between Brazil, the Caribbeans and the US Gulf Coast with the new Brazil Express (BZX) service that will deploy 9 ships of 3,000 teu to 3,600 teu on a 63 day round trip. CMA CGM will deploy 8 of the 9 ships in this new service that is scheduled to start from 22 February from Navegantes with the 3,091 teu CMA CGM PARANAGUA. The revised service will call at Navegantes, Paranagua, Santos, Rio de Janeiro/Salvador (alternative calls), Cart
COSCO, Evergreen and X-Press Feeders will enhance their jointly operated Mexico Central America X-Press (MCX)/Latin America Express (LAE) service rotation effective mid-January 2022. 3 additional ports (Lazaro Cardenas, Puerto Quetzal, Corinto) are added, with the new rotation calling at Lazaro Cardenas, Manzanillo, Puerto Quetzal, Ajacutla, Corinto, San Lorenzo, Puerto Quetzal, Lazaro Cardenas. The service will continue to deploy 3 ships of 1,500-1,800 teu, with each carrier contribution one
The new China-USWC service branded as SEAX by COSCO and Pacific China South Express (PCSX) by OOCL will be the largest independent transpacific service operated outside of the 3 Alliances' network. The service calls at Shanghai, Fuzhou, Xiamen, Yantian, Long Beach, Shanghai using 6 ships of 10,000 to 14,600 teu. The first sailing was made on 20 November. At Long Beach, the service will call at LBCT where it will not face the long queues that other carriers are facing at San Pedro Bay ports. CO