World Bunkering > News > Industry News > CSCL copes with bunker price rise

China Shipping Container Liners Co  (CSCL) Group made first half net profit of RMB1.2 (US$176m), returning the company to profit after RMB3.1bn loss in the same period last year. The turnaround was helped by successful measures to keep fuel costs down, including ultra-slow steaming.

First half fuel expenses grew 49.5% year-on-year to RMB3.7bn but that was much lower than price rises on the international bunker market.

CSCL managing director Li Shaode told a results presentation held in the Conrad Hotel Hong Kong: "The increase in fuel costs was a direct result of the increase in international crude oil price. However, through a series of rigid cost control measures such as locking fuel price and applying ultra-slow voyage speed, the increase in the group’s fuel costs during the period was lower than the increase in international fuel price of approximately 68%".

The company noted that the global economy bottomed out in the second half of 2009 and continued to improve in the first half of 2010. During the first half of this year revenue from Pacific routes rose 70.9%, European and Mediterranean routes 204.8%  and from Asia routes 51.9% to 2.186 while revenue from domestic routes increased 34.9% but other routes saw revenues decrease 15.7%.

A statement said that the company had seized the opportunities to purchase and order containers at low prices, secure certain fuel price at favourable terms, apply ultra-slow voyage speed on trial basis and optimise transhipment routes.

The company listed five points in its strategy for the rest of the year:
1.Strengthen the cooperation among trade lanes, further optimize the trade lanes network and maximise the efficiency of trade lanes.
2.Continue to refine the specifics of cost control.
3. Continue to increase efforts on developing the market of sea-to-rail intermodal transportation.
4. Enhance safety management, proactively proceed with information system construction.
5.Plan ahead and get prepared for the traditional low season by taking a proactive approach, and try to minimise future risks through the rational deployment of shipping capacity and market expansion.