China Shipping posts US$434.59 million loss in 2011 as revenue falls 18.9pc
2012 03 30
- Details
HONG KONG listed China Shipping Container Lines (CSCL) posted a year-on-year net loss of CNY2.74 billion (US$434.59 million) in 2011 with revenue falling 18.9 per cent to CYN28.24 billion, the company announced.
Laden containers in 2011 came to 7,438,002 TEU, company said in a filing to the Hong Stock exchange. This was a 3.2 per cent volume increase year on year, but lower demand from Europe and America depressed freight rates and earnings.
Too much tonnage afloat also depressed rates, said the CSCL statement. The worst rates appeared on Europe/Mediterranean trade lanes, while rates for Chinese domestic trade lanes held up from the year before, increasing CNY78 to CNY1,652, "mainly attributable to the sound development in the domestic economy", said the company statement.
The group's average freight rate in 2011 came in at CNY3,589 per TEU, a decrease of 23 per cent year on year. The average freight rate per TEU in international trade fell 24.7 per cent to CNY5,352, the company said.
Transpacific volume was down 12.9 per cent year on year to 1,238,811 TEU while volumes fell 0.5 per cent on Europe/Mediterranean trade lanes to 1,177,546 TEU. But Asia Pacific trade lanes posted a 5.3 per cent increase to 1,398,536 TEU while China's domestic trade came in with a robust 11.2 per cent jump to 3,544,064 TEU. Other trades fell 8.8 per cent to 79,045 TEU.
"In 2012, the shipping market will continue to be affected by the global economy and international trade as numerous uncertainties continue," said CSCL chairman Li Shaode.
"The Euro zone countries will pick up slowly as risks from the sovereign debt crisis remain while the US economy is expected to recover steadily and therefore stimulate trading demand. Moreover, stronger market demand will come from the Southern Hemisphere, which will serve as the driver for higher trading volume," he said.
"We will continue to see pressure arising from oversupply over a longer period. Shipping companies will continue to cooperate with each other. The shipping market will continue to move forward amid challenges and opportunities," said Mr Li.
The group will intensify marketing efforts by adhering to its "Large Clients, Large Corporation" strategy, said the CLSC statement accompanying the results.
"The group will thoroughly open up the container market in the Yangtze River valley as a shift of its service focus. The group will step up sales network construction in the Yangtze area, and gradually establish and improve upward and downward services in the Yangtze market to increase competitiveness," said the CLSC statement.
Source Shipping Gazette - Daily Shipping News
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