COSCO reported after Hong Kong market close last Thursday (30 Mar). COSCO’s
liner EBIT dropped only 32% YoY, which is much better most of the liner peers
except for Maersk and Hapag Lloyd which have more favorable mix e.g. 2022-2023
contracts and exposure to Trans-Atlantic trade. Part of the reason that COSCO
outperform probably was due to the large provision made during 4Q 2021, which
raised COSCO’s non-cash slot costs and hence the payables as reflected in the
work capital balance.