CSCL sheds the red

China Shipping Container Lines (CSCL) returned to profitability in the first-half of 2014, a period in which many other carriers were struggling to stay afloat.

On Thursday the Hong Kong-quoted boxship owner reported a gain of RMB 431.6m ($70.3m) for the six months to 30 June, which represents an increase of nearly 135% when compared to the deficit carded a year ago.

CSCL said revenue topped RMB 17.4bn during the period, which is approximately 8.5% higher than what the Chinese operator generated in the first-half of 2013, as container volumes jumped 1.8% year-on-year.

In the company’s earnings report management pointed out that demand for containerised maritime transport rose steadily during the period despite the “slow recovery” of major global economies.

“However, given the continuous increase in shipping capacity of containers, freight rates of main trade lanes showed no substantial recovery and the pace of recovery in the container market was still fragile,” it continued.

“In face of such volatile market, the group responded in a steady manner and seized opportunities to increase trade lane efficiency by accurately assessing market conditions. As a result, we achieved improved operating results as compared with the same period of last year.”

You can read CSCL’s latest earnings report in full by clicking on the link located under the Related Media section to the right of this article