The Chinese shipping giant Cosco reported that its net earnings fell by 95% during the third quarter of 2023 to $655 million due in part to lower shipping rates coupled with declining demand levels.

According to ShippingWatch, the company’s revenue fell from $14.45 billion during Q3 2022 to $5.84 billion during Q3 2023.

Cosco still managed to handle 60.06 million TEUs during the quarter, which was in line with the company’s performance during the same period in 2022.

An analyst for the online shipping research firm Alphaliner noted that the organization was able to cut its operating costs by 37% during Q3 2023.

”Cosco has not detailed how it has achieved such significant reductions, although earlier indications showed the biggest savings were made in equipment and cargo transportation, followed by voyage expenses,” the analyst wrote.

Low shipping rates will also likely impact Cosco’s competitors, such as Maersk, who could report a 97% drop in earnings in financial statements that will be published November 3, said the retail banking firm Sydbank. Meanwhile, ONE reported a profit of $187 million during the third quarter of this year on October 31, a significant drop-off from $5.5 billion during the same period in 2022.