COSCO Shipping's gross profit margin increased significantly

　　On June 28,COSCO held a naming ceremony for its second 50000 DWT semi submersible vessel,xiangyunkou.The first ship,xiangyunkou,was put into operation on January 20 this year.In addition,as an absolute dragon head in the domestic special ship transportation market,COSCO operates four semi submersible ships with 140000 DWT.

　　Under the background that China's high-speed rail,construction machinery,petroleum,electric power,marine engineering and other equipment manufacturing industries are going to sea and entering the international market,with the new shipbuilding put into operation,COSCO Shipping put forward the development strategic goal of"building the strongest comprehensive competitiveness of global special ship transportation"in early 2010 is slowly being implemented.

　　COSCO said that the new ships delivered by COSCO this year are mainly new multi-purpose heavy lift vessels,and the profitability of the new ships is higher than that of the existing old ships.In addition,the lowest shipbuilding price is 1/3 of the price in 2007.The overall gross profit rate of the company will be improved and become the profit growth point of the company.In addition,the two new 5000 bit motor boats purchased in February this year will bring good profits to the company's motor ship business,and will turn losses into profits in the whole year.

　　According to COSCO's business plan in 2011,the annual traffic volume was 8.25 million tons,and the turnover volume was 54.5 billion tons.According to the data released by COSCO in May,the fleet completed a total of 718000 tons in a single month,up 17.0%year-on-year.The year-on-year growth rate returned to double-digit from 8.2%in April,and the cumulative growth rate from January to may also rebounded to 9.3%.

　　In 2011,COSCO Shipping is expected to deliver 12 new ships,an increase of 27%compared with the existing capacity,of which 5 ships have been delivered in the first half of this year,namely,two 28000 DWT"large series"heavy lift vessels,one 50000 DWT semi submersible ship and two 5000 car carriers.The delivery of the remaining new transportation capacity in the second half of the year will become a new growth point of the company's traffic volume,which will bring the peak of new shipbuilding delivery.At the same time,the decommissioning plan for the old ships this year shows that one general cargo ship and five multi-purpose ships will complete their mission.

　　On the one hand,the transportation capacity brought by new shipbuilding has been greatly increased,while on the other hand,the fuel cost has been rising.On April 1,COSCO Shipping,as the first company in the world to levy fuel surcharges and anti piracy surcharges in the special ship industry,has attracted extensive attention of the market.According to the company,the introduction of the two surcharges has achieved good results.Up to now,the company has not only successfully received fuel surcharges,offset more than 30%of the fuel cost and increased the company's performance,but also created a new profit model for the special ship industry,reflecting the leadership role of industry leaders.

　　Some researchers believe that the significance of this measure is greater than the benefits,which reflects the enhancement of the bargaining power of shipowners when the industry cycle is upward,and also shows the company's confidence in its industry status,its foresight of the evolution of the industry competition pattern,and the efficiency of the company's management team.

　　In 2010,COSCO motor ships achieved a total operating revenue of 230 million yuan,accounting for 5.54%of the fleet's operating revenue,and a loss of 9.9 million yuan.According to the current situation,it is a high probability event that COSCO will make profits in its automobile shipping business this year,and the profit is expected to be about 10 million yuan to 20 million yuan.

　　With the gradual recovery of the world economy,the automobile and ship transportation market is gradually coming out of the trough.In addition,the export of China's automobile manufacturing industry increased significantly year on year.In 2011,the pace of domestic automobile export picked up,with the export volume of 230000 vehicles from January to April.With the gradual opening of the automobile market of Brazil,Russia and other BRICs countries to China,it is expected that the total export volume of the whole year will exceed that of 2008,reaching 700000 about.

　　COSCO's motor ship business,which started early,will become the key project of the company's development.At present,the company's motor ships are mainly based on steam leasing,with a small amount of self-management.The company's goal is to be able to take them back for their own operation next year.

　　COSCO said that in the future from the end of 2012 to the beginning of 2013,the company's existing investment needs can be met,and the next step of refinancing will be more carefully considered.

　　Some industry insiders think that the international shipping industry is still at the bottom at present.In order to get a big rebound,it is necessary to solve the problem of balance between transport capacity and traffic volume.Unless some large shipping companies go bankrupt,they can usher in great development.