Bloomberg reported that China Cosco Holdings Co the nation largest shipping line predicted a full year loss because of plunging rates for carrying commodities and containers.

The Tianjin based company said in a statement that the declining international shipping market especially the severe situation in the international dry-bulk shipping market has hurt earnings. It didn't give a loss forecast. It reported a CNY 2.1 billion loss for the third quarter.

Mr Wei Jiafu Chairman and Chief Executive Officer will become non-executive chairman as Cosco contends with global overcapacity that has hammered freight rates. The company average container rates fell 26% on transpacific routes from a year earlier in the third quarter and by 41% on Asia-Europe services.

Mr Huang Wenlong a Hong Kong based analyst with BOC International Holdings Ltd said “The dilemma for container-shipping lines now is that the more cargo you carry, the more money you lose. A recent pick-up in dry bulk rates is also unsustainable.’

Cosco spokesman said Mr Ma Zehua will take an executive director and vice chairman role at China Cosco as part of the management reshuffle. Mr Ma won't become CEO at present. The spokesman declined to be identified, citing company policy.

Mr Ma joined Cosco state owned parent as general manager in August from smaller rival China Shipping Co. Mr Wei became chairman of the parent at the same time. Mr Wei who was previously president said then that he would focus on long-term strategy while Mr Ma would run day-to-day operations.

Sales at China Cosco container shipping unit slumped 21% in the third quarter even as volumes rose 14%. Asia-Europe sales fell 33% while volumes climbed 13%.

(Sourced from Bloomberg)