Shanghai's CSCL, China's second-largest container shipping line - second only to Cosco - enjoyed a 274 per cent profit jump in 2007 to CNY3.22 billion (US$459 million) from the CNY859.2 million the company earned in 2006.
Revenue increased 27 per cent to CNY38.8 billion on higher freight rates and the movement of more containers in the burgeoning Asia-to-Europe and to a lesser extent, on the transpacific route to North America too.
"The outlook is pretty optimistic," Geoffrey Cheng, a Hong Kong-based analyst at Daiwa Institute of Research, told Bloomberg. "Domestic demand is very strong and the market has over-estimated the impact of the US slowdown."
Said CSCL chairman Li Shaode: "2008 will see China as the star and smooth sailing for CSCL. The company will continue to increase its container volume and expand its fleet. With plans to acquire container business related assets including ports, container manufacturing and logistics from our parent, [we] will continue to explore ways to save costs, step up efforts to nurture talents and offer high quality global transportation."
CSCL container volume rose 29 per cent last year to 7.3 million. Volumes on domestic lines gained 61 per cent, European shipments rose 7.9 per cent and transpacific shipments rose 14 per cent.
The company raised CYN15.5 billion in its Shanghai share sale to expand its fleet as rising demand for Asian-made goods in Europe and the US increased volumes.
Capacity went up 12 per cent in 2007, as it added more and larger ships with 4,000-TEU vessels accounting for 82 per cent of capacity.
Cosco is scheduled to report results Wednesday April 23.
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