Profit Warning of China Shipping Container Lines

By Aiswarya Lakshmi
Monday, January 25, 2016
Image: China Shipping Container Lines

 China Shipping Container Lines (CSCL) has released a profit warning stating that it expects to close the financial year 2015 with a net loss of about 2.8 billion yuan (425 million dollars) compared to a profit of over one billion yuan recorded in 2014. 

 
The Chinese container line expects to log big 2015 deficit as volumes fall 8%. The Shanghai- and Hong Kong-listed carrier said the poor results are mainly due to a depressed container shipping market.
 
While the new shipping capacity continued to expand, the imbalanced supply and demand landscape deteriorated, the freight rates of mainstream shipping lanes hit a new low, and the price of container transportation fell to the history low point. 
 
"In 2015 the total trade volume of import and export dropped to a negative growth rate of 8% due to the lackluster global economy and the slowdown in the growth of China’s economy. Demand growth for container shipping declined while new shipping capacity continued to expand, creating a greater imbalance in the market’s supply-demand equation," says the company.
 
CSCL added that it “considers that there are signs of impairment on vessels and containers assets of the company as at 31 December 2015” as it is “uncertain for the shipping industry to see a recovery in the future due to the impact of the global economic downturn.”
 
Confronting with the severe market conditions, in 2015, CSCL continued to intensify and implement various operational and managerial measures and flexibly adjusted the layout of shipping capacity, strengthened marketing efforts and minimised costs according to the changing market conditions. 
 
Its annual results announcement is expected to be released in March. 
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Milton to Replace Retiring Kelly, President, ExxonMobil

Alan Kelly, president of ExxonMobil Fuels, Lubricants & Specialties Marketing Company, has announced his intention to retire effective Aug. 1, 2016, after more than 34 years of service.

UASC Fully Compliant VGM Lift Now

United Arab Shipping Company (UASC) announced today the conclusion of a 100% compliant Verified Gross Mass (VGM) lift of 159 UASC containers on board CSCL’s Saturn.

Netherlands Opts for ‘Flexible’ Container Weighing

As of July 1, shippers and freight forwarders are required to verify the weight of a container before the container is loaded onto a ship.   The Netherlands’

Finance

Baltic Index Up for Eighth Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, continued its rise on Friday, for an eighth consecutive session,

Asia-N.Europe Box Rates up 77 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe rose 77.4 percent to $1,206 per 20-foot container (TEU) in the week ended on Friday,

Euronav Share Buyback

Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) today announces that the Company has purchased 192,415 of its own shares on Euronext Brussels for an aggregate price of EUR 1,

Logistics

Asia Tankers-VLCC Rates Expected to Soften

MidEast rates slip from two-week high on June 28; raft of new ships and repaired vessels weigh on rates. Freight rates for very large crude carriers (VLCCs)

Will Zim Join 2M?

Israeli carrier Zim Integrated Shipping Services (ZIM) might join the 2M Alliance between Maersk Line and Mediterranean Shipping Co., Alphaline said quoting industry sources.

Diana Shipping Contract for M/V Oceanis With Nidera

Diana Shipping Inc.  has announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Nidera S.P.A., Roma, for one of its Panamax dry bulk vessels,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0265 sec (38 req/sec)