COSCO Shipping Holdings posted a sharp rebound in third-quarter earnings, with net profit up 81% year on year and transpacific sailings the biggest growth driver. The result reflects longer vessel turnaround times and elevated spot rates amid persistent geopolitical disruption, meaning cost pressure on shippers exporting from China to the US is unlikely to ease in the near term.
What Happened
According to foreign media reports, COSCO Shipping Holdings said in a Thursday filing that third-quarter net income rose 81% to RMB 17.2 billion (about US$2.6 billion), with transpacific sailings the largest contributor to growth.
The report, citing Drewry World Container Index data, said spot rates for a 40-foot container held near two-year highs for most of the quarter.
The strong showing foreshadows a bumper season for some global peers. The report said earnings estimates for Europe's Maersk and Hapag-Lloyd have been revised up since July; Japan's Nippon Yusen raised its outlook on Thursday, beating analyst expectations; and Taiwan, China-based Evergreen Marine is set for its most profitable quarter since 2024 when it reports next month.
Background
Global supply chains remained stretched through the quarter as vessels continued to route Asia-Europe sailings around Africa's Cape of Good Hope to avoid the Middle East, lengthening voyages and tying up capacity and schedules.
A Bloomberg Intelligence analyst quoted in the report said container spot rates are likely to stay where they are, with transpacific spot rates firmly anchored near post-pandemic highs amid resilient US trade flows. The ports of Los Angeles and Long Beach handled a combined 2.04 million TEUs in September, setting an all-time monthly record.
Impact on Shippers
On transit time, the Cape of Good Hope detour lengthens Asia-Europe voyages and reduces vessel turnaround efficiency. Although the transpacific lane does not directly pass through the relevant waters, global capacity is being reallocated, so space and schedule reliability remain affected and shippers should build in buffer time.
On cost, spot rates remain elevated, and first-mile ocean costs for Ocean+Parcel and Ocean+Truck Delivery are unlikely to fall sharply in the near term. The gap between contract and spot pricing may widen, requiring more careful calculation when deciding whether to lock in rates. On customs clearance, strong US import volumes and record port throughput raise congestion and inspection queue risks, so document and declaration timing should be checked in advance.
Recommendations
Shippers should lock in space and rates early based on peak-season volumes and extend lead times for time-sensitive cargo. They should also verify product names, declared values and HS codes, allow extra time for port congestion and inspections, and monitor carriers' latest rate announcements and schedule adjustments.