China Cosco Holdings swung to a loss of $77.3 million in the first quarter ended March 30 as global vessel overcapacity caused a decline in freight rates in the container and dry bulk sectors, the Journal of Commerce reports.
This compared with a net profit of $135.7 in the same period last year, the company said on Thursday in a filing to the Shanghai stock exchange.
The Tianjin-based carrier operates the world's largest dry bulk fleet and the fifth-largest container fleet by capacity.
Vessel overcapacity, especially in the dry bulk market, knocked the company's first-quarter revenue down 5.6 percent to $2.5 billion.
China Cosco said its container volume rose 12 percent in the first quarter while revenue increased only 3.8 percent to $1.2 billion.
Its dry-bulk fleet had a 2.2 percent drop in volume to 65 million tons, according to the statement. It didn't give a revenue figure.
The appreciation of Chinese yuan and fuel price increases also ate into the company's margins.
China Cosco said last month it expects a 32 percent drop in dry-bulk traffic this year to 959 billion ton-nautical miles. It operated 438 commodity vessels and 153 container ships as of March 31.
Its container leasing and terminal operating arm, Cosco Pacific, on Wednesday reported a first-quarter net profit of $109 million, down 18 percent from a year earlier.