OOCL's mid-term net profit plummeted by 86% and is expected to experience difficulties in the second half of the year

　　The global shipping industry is in a downturn.Affected by slowing demand growth,high oil prices and falling freight rates,OOCL's net profit in the first half of the year dropped by 86.3%to 175 million yuan(US dollars,the same below).The company predicts that it will be difficult to operate in the second half of the year.

　　Wei Jiafu,chairman of COSCO Pacific parent company COSCO Group,said that the shipping market situation in the second half of the year will be more severe than that in the first half of the year,which is mainly affected by the global economic downturn,the rapid delivery of new ships and the continuous downturn of freight rates.

　　Jin Baijian,director and chief financial officer of OOCL,said that the business in the first half of the year was in line with expectations,but the business environment in the second half of the year would not be better than that in the first half of the year.The excess carrying capacity has put pressure on freight rates.High oil prices and the European debt crisis have also affected consumer demand and industry performance.However,the second half of the year is a traditional peak season,and freight rates in the third quarter will be slightly improved.The stock yesterday saw a minimum of 36 yuan,a 19 month low,down 3.78%and closed at 38.15 yuan,a new low in a year.