Start-up TCC suffers US$7.4 million on transpacific shuttle

TRANSPACIFIC start-up, The Containership Company (TCC), which launched no-frills transpacific port-to-port shuttle a year ago has posted a pre-tax loss of US$7.4 million on full-year revenue of $83.8 million.


Losses were blamed on increased competition on eastbound trades skewering freight rates alongside cargo volumes plummeting.


Despite rising equipment costs and positioning, the Norwegian-company start-up forecasts expansion in 2011, which began with acquisition of its first owned vessel, the 2,578-TEU Taicang Dragon for $28.8 million, said to be a good price as the company reckons the ship was worth $35 million.


TCC is not alone in increasing capacity and coverage on transpacific trade with CKYH (Cosco, "K" Line, Yang Ming and Hanjin Shipping) Alliance introducing a loop deploying 10 ships between 8,000-10,000 TEU.


British analysts at BoxTradeIntelligence (BTI) are less encouraging with their latest report saying that at the end of the first quarter of 2011 oil prices are rising and containers are moving at much lower rates than last year.


Transpacific trade increased 20 per cent in 2010 so a decline is expected in 2011 but "any growth at all is positive", said BTI managing director Doug Bannister.
(Source:http://www.schednet.com)