China Shipping Container Line (CSCL) first half profit dropped a whopping 97% to US$2.2 million, from revenues of $2.5 billion, down 9.2% year-on-year.
CSCL attributed the decline to weak Asia-Europe and Mediterranean container freight rates and overcapacity.
“Freight rates for Asia-Europe trade lanes hit record low levels under the impact of new shipping capacity put into market amid a weak economic growth momentum in the eurozone,” said CSCL.
“In the second half of 2015, international trade still won’t be cheerful.”
However, the line is also becoming a big player in the mega-ship league, reported to have ordered 10 ultra-large containerships of 20 000 TEU each, according to the Wall Street Journal.
This, said Port Technology, was in a bid to fulfil capacity commitments with the shipping alliance O3. The order follows the carrier’s recent order for eight 13 500 TEU ships.
Chinese carrier reports profit drop of 97%
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