China Shipping Container Lines in the first half of the year lost $95 million, compared with a profit of $264 million a year earlier, as slumping rates and volumes pushed revenue down 12.9 percent, the Journal of Commerce reports.
The company warned that difficult market conditions could last another year or two. “The road to recovery is not smooth,” it said. China Shipping was the latest in a series of carriers to report losses or sharply reduced profits for the first half or second quarter of the year.
The company posted an $83 million operating loss, compared with $208 million in operating profit in the first half of 2010. Revenue fell to $2.2 billion from $2.36 billion.
The company said low rates, weak demands and high oil prices hit most of the company’s routes. Container volumes fell 3.3 percent to 3,436,000 20-foot equivalent container units.
The company warned that difficult market conditions could last another year or two. “The road to recovery is not smooth,” it said. China Shipping was the latest in a series of carriers to report losses or sharply reduced profits for the first half or second quarter of the year.
The company posted an $83 million operating loss, compared with $208 million in operating profit in the first half of 2010. Revenue fell to $2.2 billion from $2.36 billion.
The company said low rates, weak demands and high oil prices hit most of the company’s routes. Container volumes fell 3.3 percent to 3,436,000 20-foot equivalent container units.
Trans-Pacific volume fell 9.9 percent to 597,393 TEUs, while Europe-Mediterranean volume fell 11 percent to 533,0089. Asia-Australia-New Zealand volume tumbled 11.5 percent to 623,180 TEUs. Intra-China services rose 5.8 percent to 1.6 million TEUs,while other services rose 15.6 percent to 43,016 TEUs.