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CSCL back in the black in 2012

CSCL back in the black in 2012
Shanghai: China Shipping Container Lines (CSCL) emerged from a 2011 net loss to post a net profit of RMB524.92m ($84.43m) due largely to non-operating gains.

The Shanghai- and Hong Kong-listed container line of state-owned China Shipping Group returned to the black last year from a massive deficit of RMB2.74bn.

CSCL said the profit “mainly consisted of gain from disposal of a proportion of self-owned containers by the company.”

Revenue in 2012 rose to RMB32.55bn from RMB28.25bn due primarily to increase in volume of loaded cargoes and rise in freight rates.

Despite freight rates improving at the start of 2012 compared to a year earlier, it remains difficult for the container shipping sector to be optimistic in 2013, according to CSCL.

Li Shaode, chairman of China Shipping Group, commented that the oversupply situation of shipping capacity will see no genuine improvement in the near future, as 258 ships with a total capacity of 1.59m teu will be delivered in 2013, raising new global capacity by 7.3%.

In addition, uncertainties such as global economy and trade development, volatile bunker fuel prices and competition will continue to hinder the development of the industry, he added.

TAGS: Containers