Air China Cargo Ocean (920571.BJ) Practicing National Goods and National Fortune, Green Transport Capacity Leading Dry Bulk Shipping Recovery

Currently, after a phase of adjustment, the global dry bulk shipping market is quietly shifting in terms of supply and demand. The rebound in freight indices and industry expectations for future capacity together outline the contours of a new cycle of prosperity. Against this backdrop, China COSCO Shipping Corporation (920571.BJ) has recently announced its new vessel delivery plans for 2026 and its 2025 performance brief, sending positive signals of steady growth and forward-looking strategy to the market, demonstrating the company’s strategic resilience and development agility as an industry leader.

Industry Recovery and Structural Optimization Lay the Foundation for Growth

Since 2025, the dry bulk shipping market has shown a trend of “bottoming out early and rising later, gradually recovering.” The Baltic Dry Index (BDI) has significantly rebounded since the end of 2025, closing at 2,064 points on March 18, up nearly 10% from the end of 2025. Meanwhile, China’s coastal dry bulk market has also strengthened in tandem. Data from the Shanghai Shipping Exchange shows that the China Coastal Dry Bulk Freight Index closed at 985.95 points on March 13, a 7.22% increase from February 27, with major cargo types like coal and grains seeing substantial freight rate increases. This trend is driven by growing demand for long-distance transportation and a slowdown in capacity supply.

On one hand, the development of emerging resource areas such as the Simandou iron ore project has extended average voyage distances, effectively boosting demand measured in “tons per nautical mile.” According to Clarkson, global dry bulk seaborne throughput is expected to grow by 2.0% year-over-year in 2026, outpacing trade volume growth. On the other hand, new ship orders in 2025 were at their lowest in nearly five years. Coupled with accelerated aging of the global fleet and stricter IMO energy efficiency regulations, the pace of new capacity release is expected to slow, limiting supply growth. This “demand growth with tight supply” pattern provides a solid foundation for freight rates to remain in favorable ranges and creates performance resilience for companies with high operational efficiency.

Performance Validation and Fleet Renewal Build Asset Moats

In a favorable market environment, China COSCO Shipping has delivered a steady annual performance. Its 2025 performance brief shows operating revenue of 997 million yuan, a 6.42% increase year-over-year; net profit attributable to shareholders was 28.34 million yuan, up 25.04%, with continued improvement in profitability.

Behind these impressive results is the company’s ongoing refinement of fleet quality and operational efficiency. As of January 29, 2026, the company’s self-operated dry bulk fleet comprised 21 vessels with a total capacity of over 1.5 million DWT. Meanwhile, the fleet is undergoing a high-quality upgrade cycle. In 2026, the company plans to deliver six new green, smart vessels, adding nearly 500,000 DWT of capacity, including two 63,500 DWT bulkers already delivered and in operation, with the remaining four ships scheduled for delivery within the year.

While building new ships, the company also completed the sale of three older vessels in 2025, phasing out outdated capacity. Currently, China COSCO Shipping’s fleet has an average age of about 7 years, well below the global average for dry bulk fleets. After all new ships are delivered in 2026, the fleet’s average age will decrease further. A younger, more efficient fleet offers significant advantages in charter negotiations, fuel consumption, and maintenance costs, and enables rapid response to market changes and opportunities for freight rate increases.

Green Transition and Flag Responsibility Respond to Era’s Calls

In the first year of China’s 14th Five-Year Plan, green low-carbon development and high-quality growth have become core themes for the shipping and logistics industry. China COSCO Shipping has deeply grasped this trend, elevating green development to a core strategy and establishing notable green capacity advantages. Currently, over 30% of its fleet’s capacity is green, and in 2026, the company will deliver two 63,500 DWT low-carbon, intelligent bulkers and four 89,000 DWT methanol dual-fuel vessels. These ships feature advanced energy-saving designs, intelligent control systems, and clean fuel technologies, achieving a win-win in emission reduction and cost savings.

Additionally, as one of the leading private enterprises operating a fleet of over 20 flag vessels flying the Chinese national flag, China COSCO Shipping plays a vital role in safeguarding national strategic material transportation and protecting international shipping rights. The company continues to expand its fleet of flag vessels, actively practicing “domestic ships serving national interests.” This demonstrates its commitment as a private sector leader serving national strategies and social responsibilities, aligning closely with policies encouraging the development of “national ships, national manufacturing, and national trade.”

Strategic Focus and Deep Customer Engagement Ensure Operational Efficiency

While consolidating its core domestic coastal and Yangtze River routes, China COSCO Shipping is gradually shifting its operational focus toward “mainly foreign trade” to better seize global trade opportunities. To support this expansion, the company has actively built a stable global cooperation network, forming strategic partnerships with industry players like COSCO Shipping Lines (Hong Kong) and establishing long-term relationships with major domestic and international shippers and industry giants to secure quality cargo sources in advance.

With precise market analysis and flexible fleet deployment, the company maintains high operational efficiency. This not only increases daily charter income but also enhances profit stability amid industry cycles, allowing the company to fully benefit from market recovery.

In this industry recovery wave, China COSCO Shipping is delivering steady growth, continuously optimizing its green fleet, expanding internationally with a focus on foreign trade, and upholding the responsibility of its flag fleet. It is building core competitiveness that can withstand industry cycles. The company’s performance reflects not only stable financial and capacity data but also a strategic posture rooted in national interests, focused on industry future, and committed to sustainable high-quality development. As new capacity is delivered and industry recovery continues, this leading enterprise with nearly 25 years of shipping industry experience is poised to sail toward broader horizons in the deep blue.