Cosco Shipping Holdings Co. slid into a 50% plunge in first‑quarter profit as freight rates fell sharply. Net income dropped to 5.9 billion yuan ($863 million) from 11.7 billion yuan a year earlier, while revenue slipped 11% to 51.8 billion yuan. The hit came as container rates averaged 14% lower than last year.

The downturn echoes a broader slump in global shipping, driven by weaker demand and surplus capacity. Cosco’s CEO warned that the Middle East conflict continues to erode safety and stability for vessels, adding that the region now represents a smaller slice of the company’s worldwide capacity mix.

Despite the profit hit, Cosco has begun re‑booking general cargo for Gulf markets, signaling a cautious rebound in Middle East traffic. The company stresses that its exposure to the region is limited, but the current environment underscores the fragility of the container fleet amid geopolitical unrest.

With freight rates expected to stay volatile, investors will watch how Cosco’s cost structure and route mix adapt. The 50% profit drop underscores the sector’s vulnerability to pricing pressures and geopolitical shocks, reminding stakeholders that even the largest liners face sharp margin erosion when global demand falters.