Chinese state-owned carrier China Shipping Container Lines (CSCL) has announced in a profit warning that it expects a 2015 net loss of US$425m due to severe market conditions, record low freight rates and vessel impairment losses.
In a profit warning filed to the Hong Kong Exchange, the company admitted that its 2015 loss, which includes a US$304m operating loss and US$122m worth assets impairment, represents a “relatively large” decline from the US$161m net profit recorded in 2014.
The carrier said in its exchange filing: “Affected by factors including the demand growth of the container transportation market decelerated 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.”
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