China Shipping Container Lines says it increased freight rates on European routes in January and is about to raise rates again on those routes as well as on transpacific routes in the next two months.
'Net profits in the first quarter will be higher than last year,' chairman Li Shaode said.
The company posted a 274 per cent increase in net profit to 3.2 billion yuan (HK$3.6 billion) last year because of stringent cost controls and an increase in volume in European and intra-Asia trade.
The supply of new vessels in the world will increase 14 per cent to 15 per cent this year while global trade growth will rise 15 per cent to 16 per cent. The company said the balance in demand and supply would facilitate the increase in freight rates this year.
Huang Xiaowen, managing director of CSCL, said the company had increased freight rates on Europe trade by US$50 to US$100 to an average of about US$1,300 per 20-foot equivalent unit (teu), effective from January 1. Further rate increases of US$200 per teu on European trade would be imposed, he added.
The shipping line is also negotiating with customers on transpacific trade rates. Mr Huang said it intended to increase freight rates by US$600 per teu.
