[photopress:logistic_china_shipping_container_lines.jpg,full,alignright]China Shipping Container Lines, Asia’s second-largest container line, said it will beat its profit forecast after raising rates for shipments from Europe and carrying more cargo from the U.S.
Chairman Li Shaode said in Shanghai that profit this year will be ‘significantly better’ than the RMB3.18 billion ($430 million) previously expected.
He said, ‘Fewer empty boxes help cut costs on U.S. routes.’
Shipping lines are carrying more out of U.S. ports this year as a 10.3% decline in the dollar against a basket of major world currencies cuts overseas prices for exporters. China Shipping raised rates for shipments from Europe to Asia by $500 a box on October 1.
Jack Xu, an analyst at SinoPac Securities in Shanghai, said, ‘We are definitely seeing some accelerating growth in U.S. exports, which will help out with the returning boxes.The outlook for Asia-U.S. trade next year is not encouraging. This because the appreciation of the RMB may damped China’s export growth.
China Shipping’s vessels are now about 40% full on voyages from the U.S., compared with about 10% in the whole of 2006i. Almost all vessels are completely full on sailings to the U.S..
Source: Bloomberg
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