China Shipping Container Lines (CSCL) slumped into the red in the first-half due to a combination of low freight rates, weak demand, high oil prices and other negative factors, Seatrade Asia online reports.The Hong Kong-listed shipping firm posted a first-half net loss of RMB630.3m ($98.6m), plunging 153.8% from a net profit of RMB1.2bn in the same period of last year.
Its revenue declined 12.9% to RMB14bn in the period compared to RMB16bn a year ago.
CSCL blamed an influx of shipping capacity reaching 780,000 teu in the first-half that suppressed rates on the long-haul Asia - Europe and transpacific trade lanes.
“It is expected in the second half of 2011 and in the next one or two years, the road to recovery will be characterised by uncertainty and volatility and is not going to be an easy one. The main determining factor will be the peak period for delivery of new vessels,” CSCL said.
Its revenue declined 12.9% to RMB14bn in the period compared to RMB16bn a year ago.
CSCL blamed an influx of shipping capacity reaching 780,000 teu in the first-half that suppressed rates on the long-haul Asia - Europe and transpacific trade lanes.
“It is expected in the second half of 2011 and in the next one or two years, the road to recovery will be characterised by uncertainty and volatility and is not going to be an easy one. The main determining factor will be the peak period for delivery of new vessels,” CSCL said.