An analyst pointed out that due to earlier radical expansion for COSCO, the operation cost continued higher. The further expansion of capacity exacerbated imbalance between supply and demand. Therefore, China COSCO, the world's largest bulk vessels operator, posted a net loss for1q 2013. As widely expected, COSCO will get better till 2014 at the earliest.

It recorded a net loss of 3.35 billion yuan (HK$3.8 billion), compared with a net profit of 6.14 billion yuan a year ago, according to mainland accounting standards. Revenue was 10.76 billion yuan, down 63.77 per cent. The company shipped 994,498 20-foot equivalent units and 62.89 million tonnes of bulk cargo, down 29.7 per cent and 7.4 per cent from last year, respectively.

China COSCO Chairman Wei Jiafu, aged 63, whose shipping industry career lasted for 36 years, from 1998 served as president of the China Ocean Shipping (Group) Corporation. He said that this is the toughest time. The BDI index has fallen back to daily, monthly and quarterly historic low level successively.