Alphaliner is predicting that with a few exceptions, shipping lines will end 2011 in the negative earnings territory, and it expects fourth quarter results will be weaker than in the third quarter, on the back of low volumes and crumbling freight rates with the winter slack season biting in.
The Paris-based maritime consultancy said that the average operating margins of 15 ocean liners polled found they had decreased to minue nine per cent in the third quarter compared to minus eight per cent in the second quarter of this year. It said 14 shipping lines posted operating losses, with margins ranging from minus three per cent to minus 25 per cent with only Hapag-Lloyd avoiding net losses in the third quarter.
The tough operating climate has already seen MISC Berhad head for the container shipping exit, after making a US$928 million loss in the last four years from its liner operations. But its share of global capacity is less than 0.3 per cent, so its exit is not expected to have much impact on reducing surplus capacity.
It said that out of the top 20 shipping lines, 16 have continued to add capacity since January, and the other four cut their operating capacity.
It said on average capacity rose by 9.3 per cent between January and November in 2011.
Alphaliner noted that CSAV over this period slashed its operating capacity the most by 33 per cent, or 190,000 TEU, and is now trying to attract a partner for its container shipping unit. This comes as the carrier is expected to post losses of US$846 million in the first nine months of this year, wiping out capital injections made by its investors this year. |
