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THE SHARP plunge in China’s export volumes caused China Shipping Container Line’s heavy first quarter losses, and analysts do not expect the company to rebound this year.
CSCL, China’s second-largest container line, swung into the red for the first three months this year, recording a net loss of Yuan1.2bn (US$178m) compared with a Yuan488m net profit in the corresponding period last year.
“China exports saw a more than 20% decrease in the first quarter. Export-orientated CSCL inevitably fell victim amid the sharp decline,” Redford Securities head of research Kenny Tang said.
According to China’s customs body, the country’s container exports totalled 40,000 boxes in March. Export value totalled US$221m and exports were down for five straight months since last November.
The Shanghai Shipping Exchange indicates that shipping rates for Europe and Mediterranean Sea routes from China were US$300 per teu and US$600 per feu, respectively. Box freight rates are half what they were a year ago.
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