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CSCL slumps to full year loss of $420m

CSCL slumps to full year loss of $420m
China Shipping Container Lines (CSCL) plunged to a net loss in 2013 as operating costs bite amid a global container shipping market marked by a notable mismatch between supply and demand.

The Shanghai and Hong Kong-listed shipowner slumped to a loss of RMB2.61bn ($420.36m) last year as against a net profit of RMB524.92m in 2012.

Revenue went up slightly to RMB33.92bn compared to RMB33bn in the previous year.

CSCL noted that freight rates on main trades showed “no substantial recovery and continued to fluctuate at low level.”

“Shipping companies continued to face a severe operating environment. Idling of transportation capacity, slow steaming, dismantling of vessels, diverting of shipping capacity and other measures adopted by container liners had relieved the supply and demand pressure to a certain extent,” CSCL commented.

“However, the imbalance in the overall supply and demand in the shipping market cannot be practically improved in the short run.

“In view of the prolonged operational pressure and the development trend for large scale container vessels, cooperation between container liners into alliances will be further explored,” it added.

The container carrier urged shipping companies to break away from their traditional thinking and operational modes, develop strategic vision and initiate innovation in order to adapt to the new situation and ever changing new pattern.

TAGS: Containers