Overcapacity in the global shipping industry has led the China Shipping Development Company (CSDC) to report an 80% profit fall in 2009.
The dry-bulk arm of China Shipping Group said its net income dropped to CNY1.07bn ($156m), compared to CNY5.37bn ($786.5m) a year earlier.
The Hong Kong-listed company’s revenues dropped to CNY8.73bn ($1.2bn) last year compared to CNY17.21bn ($2.5bn) a year earlier.
Pacific Basin Shipping and Sinotrans Shipping in China have also reported lower profits due to the expansion in the dry-bulk fleet outpacing Chinese demand for shipments of iron ore and coal.
The company said it is planning to add four dry-bulk vessels in 2010 to supply iron ore for steelmaker Shougang Corporation.