CSCL's profit increases 6.9pc to US$646 million in 2010

HONG KONG listed China Shipping Container Lines (CSCL) has posted a year-on-year 6.9 per cent net profit increase to CNY4.2 billion (US$646 million) in 2010, drawn on revenues of CNY34.8 billion, an increase of 76.3 per cent.


"In 2010, the global financial crisis receded, each of the major economies was gradually back on track to recovery and the container shipping industry saw its chance to turn around as demand resumed," said the chairman Li Shaode in a company statement.


The container carrier, rated the 10th largest in the world, "proactively idled its shipping capacity in face of a weak market condition in early 2010, with the highest idle rate exceeding 10 per cent," said a company statement.


To increase income, CSCL launched more trade lanes and expanded the coverage of its strings to gain more market share in various regional markets last year through "exchanging and buying shipping space".


Looking ahead, CSCL said it will continue to optimise fleet size. "In 2011, we will have six vessels each with a capacity of 14,100 TEU and three with a capacity of 4,700 TEU. In 2012, we will have two vessels each with a capacity of 14,100 TEU and five with a capacity of 4,700 TEU," said the company.


Additionally, it aims to further improve the operational efficiency of trade lanes by flexibly arranging its shipping capacity and adjusting overall arrangement of trade lanes.


The carrier said it will apply a more rigid cost control by "reducing voyage speed to reduce fuel consumption and take measures to manage containers, control port cost, transshipment cost and so forth."


"2011 will be a critical year for the development of the container transportation business. It presents both opportunities from the global macro-economic recovery as well as tremendous challenges due to regional uncertainties," said Mr Li.
(Source:http://www.schednet.com)