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CSCL returns to profit in 2014

CSCL returns to profit in 2014
China Shipping Container Lines (CSCL) has returned to the black in 2014, boosted by a combination of various factors, the company announced.

Net profit for the financial year ended 31 December 2014 was recorded at RMB1.04bn ($167.37m) as against a loss of RMB2.61bn in 2013.

Revenue for last year rose 6.4% year-on-year to RMB36.08bn, due to a combination of higher freight rates, lower cost of services, and a marked increase in other income.

“Increase in freight rates was primarily due to the recovery of and increased demand in international trade lanes in 2014. However, due to demand-supply imbalance, freight rates across various trade lanes showed a mixed performance, and the overall growth in freight rates was insignificant,” CSCL said.

It pointed out that the liner industry remains fragile, and new shipping capacity of approximately 1,750,000 teu will be delivered this year, which will further widen the imbalance of supply and demand.

“Going forward, the container transportation market will continue to move forward in the midst of volatilities,” CSCL observed.

As at 31 December 2014, the total shipping capacity of the group amounted to 726,613 teu, representing an increase of 19% compared to 2013.

TAGS: Containers