China COSCO (Ocean Shipping Group Co) Holdings Company, the country's top shipping conglomerate, on Friday reported a loss of CNY 271 billion (USD 432 million) for the first half of 2011, registering a massive decline of 176.8% YoY.

Mr Wei Jiafu chairman said that the deficit was mainly a result of the lackluster global economy, with demand in developed economies remaining flat while emerging markets are busy combating inflation.

He said that “However, China's role in promoting global economic recovery with its ongoing processes of urbanization and industrialization is likely to lift the shipping industry in the long term.”

He added that “We hope to see the market warm up as the world economy bounces back" in the second half of the year.”

The shipping industry, which acts as a barometer of world economic activity, has been affected by the fragile economic recovery. The dismal market, plagued by the rising price of oil, overcapacity and fierce competition, has further strained the sector.

(Sourced from China Daily)