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CSCL continues to struggle with losses

CSCL continues to struggle with losses
China Shipping Container Lines (CSCL) continued to struggle amid the weak container shipping market with a first half loss of RMB1.26bn ($205.87m).

The losses so far this year were similar to a deficit of RMB1.28bn reported in the same period of 2012 as the business environment of low freight rates and high operating cost has also remained largely unchanged.

Revenue for the Hong Kong and Shanghai-listed shipping firm came up to RMB15.85bn in the first half, up 3.5% year-on-year.

As at 30 June 2013, CSCL's shipping capacity reached 620,000 teu as it took delivery of three new carriers. At the same time, when the price of shipbuilding was at a market low, the company seized the opportunity and ordered five containerships with capacity of 18.400 teu, demonstrating its inclination to the trend of larger, fuel efficient containerships.

Looking ahead, the second half of 2013 will continue to present challenges to the shipping industry in terms of imbalance between supply and demand.

“In the third quarter of 2013, volume of freight transportation on main shipping lanes showed the trend of a seasonal increase with the loading rate maintained at a comparatively high level,” CSCL said.

“Freight rate bounced back since it reached bottom in July, releasing certain pressure of the liner shipping companies.”

TAGS: Containers