Chinese Chairman of COSCO Group, Wei Jiafu, delivers his speech after he is awarded with an honorary medal during a ceremony at Greece’s Foreign Ministry in Athens, June 27, 2013. REUTERS/John Kolesidis
By Yimou Lee and Rujun Shen
HONG KONG/SINGAPORE, July 2 (Reuters) – China’s largest shipping group, China Ocean Shipping (Group) Co (COSCO Group) has replaced its chairman in what appears to be a bid to boost profitability amid a downturn in the global shipping industry.
COSCO Group, parent of the world’s largest dry bulk cargo fleet operator COSCO Holdings Co Ltd , said in a statement that Wei Jiafu, 63, was replaced by Ma Zehua, its 60-year-old president and director. Wei would also retire from the company, the statement said, without giving further details.
COSCO Holdings logged a net loss of 9.6 billion yuan ($1.5 billion) for 2012, its second year in the red. Its shares have dropped nearly 9 percent so far this year, on course for their fourth year of decline.
Ma takes over COSCO Group as the global shipping industry is suffering from a severe downturn, with new orders at China’s shipyards falling to a seven-year low due to the global economic slowdown and an oversupply of vessels.
The Chinese government has been trying to support the domestic shipping industry since the 2008 financial crisis, and local media reports said this week Beijing was considering policies to revive the shipbuilding business.
“The oversupply in the shipping market is still very severe, so shipping firms and shipbuilders face a grim outlook this year,” said Lawrence Li, an analyst at UOB Kay Hian based in Shanghai.
“COSCO has been controlling capacity… but their problems have accumulated over the years and were not created just during Wei’s reign,” he added. (Editing by Lee Chyen Yee and Miral Fahmy)
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
By Yimou Lee TAIPEI, March 7 (Reuters) – China has stepped up grey-zone warfare against Taiwan, aiming to make the areas around the democratic island “saturated” with balloons, drones and civilian boats,...
Austal USA has kicked off plans to construct a new manufacturing facility, marking a significant expansion of its shipyard capacity in Mobile, Alabama in support of U.S. Navy and Coast...
Oldendorff and Norsepower have announced an agreement to install three Norsepower Rotor Sails™ on board a modern bulk carrier to reduce its emissions. The vessel, Dietrich Oldendorff, will be equipped...
February 5, 2024
Total Views: 833
Why Join gCaptain Club?
Be Informed: Stay updated with the latest maritime news and trends.
Connect: Network with a community of maritime professionals and enthusiasts.
Gain Insights: Receive exclusive content and personal perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.