China Shipping Container Lines (CSCL) was left lying in red ink after it posted a huge net loss in 2011, a reverse from a net profit in the previous year, Seatrade Asia online reports. The Hong Kong-listed line recorded a net loss of RMB2.74bn ($434.56m) last year as against a net profit of RMB4.2bn in 2010. Revenue fell to RMB28.25bn compared to RMB34.81bn.
The company blamed the poor year on slow demand for container transportation, oversupply of vessels into the market and persistently high fuel prices, said Li Shaode, chairman of CSCL.
Li said the company “calmly coped” with the situation by setting out clear corporate development strategies, refining management and reinforcing cost control.
“In 2012, the shipping transportation market will continue to be affected by the global economy and international trade as numerous uncertainties continue to exist,” he said. “Eurozone countries will pick up slowly as risks from the sovereign debt crisis remain while the US economy is expected to recover steadily and therefore stimulate trading demand.”
The company blamed the poor year on slow demand for container transportation, oversupply of vessels into the market and persistently high fuel prices, said Li Shaode, chairman of CSCL.
Li said the company “calmly coped” with the situation by setting out clear corporate development strategies, refining management and reinforcing cost control.
“In 2012, the shipping transportation market will continue to be affected by the global economy and international trade as numerous uncertainties continue to exist,” he said. “Eurozone countries will pick up slowly as risks from the sovereign debt crisis remain while the US economy is expected to recover steadily and therefore stimulate trading demand.”