CHINA Shipping Container Lines (CSCL), the Shanghai and Hong Kong-listed unit of China Shipping Group, has forecast higher shipments and revenues this year but is less bullish about margins.
According to a regulatory filing, the state carrier is targeting full-year shipments of 8.2-8.5 million teu, compared to slightly above 8 million teu last year.
CSCL, the world’s ninth-largest container line by fleet size, expects its revenues to reach Rmb40.9 million (US$6.6m), up from Rmb32.6 million a year ago. However, it is less certain whether it can deliver higher profits.
“Our goal is to control the increase of expense per box. It should be no more than the increase of revenue per box this year,” CSCL said.
“With uncertain supply-demand fundamentals and changing business environments, we are seeing more uncertainty over freight rates and our revenues may fluctuate accordingly.”
The box-shipping market has bottomed out since early 2012 and most carriers have only seen weak, slow recovery due to supply overhang.
CSCL is adjusting down its shipping capacity, suggesting it will seek to win more business by improving its operating efficiency and load factors.
The company, which operated 145 vessels with nearly 595,000teu at end-December, is due to take delivery of four 4,700teu vessels and three 10,000teu ships in 2013.
However, it is also on track to phase out around 120,00 teu of tonnage this year via scrapping and redelivery.
“We will aim to speed up the optimisation of our fleet structure and strengthen our partnership in international trades,” CSCL said.
In 2012, the company reported a negative operating margin of minus 0.4%, an improvement nevertheless on its 2011 margin of minus 7.2%.
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