China shipping giant pays big bonuses in freight boom

Asian shipping companies are offering mega bonuses to employees amid a boom in freight rates, with China’s state-owned giant Cosco Shipping Holdings Co. doling out as much as as much as 60% of a manager’s annual salary, according to Caixin Global.

Cosco is among shipping companies distributing huge year-end bonuses to workers, Caixin said, citing employees at the company. Other shippers are also giving out generous rewards. A worker at Taiwan’s Evergreen Marine Corp. received a year-end bonus that was nearly 40 times their monthly salary, according to the daily.

Asian shipping lines have seen revenues soar on record freight rates, as the pandemic created major disruptions to the global supply chain. Surging demand for consumer goods coupled with lockdowns and border closures have created a worldwide shortage of shipping capacity and port delays.

Cosco’s earnings jumped 1,651% to 67.6 billion yuan ($10.7 billion) in the first three quarters of 2021, according to a company filing. The spot rate for a 40-foot container to the U.S. from Asia topped $20,000 last year, including surcharges and premiums, up from less than $2,000 a few years ago.