What's happening in China?

 

China Trade Specialists 

 

Turbo Maritime Agency Limited

Your Logistic Provider in South
China
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Golden Fortune Shipping
Co., Ltd.

We are now Accessible Anywhere
and Anytime
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Greaten Shipping Agency Ltd.

The pursuit of excellence
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Global Net Int'l Logistics
Co., Ltd.

One of our major propose. It's fast
and be on time!
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FESCO Lines China Company Ltd
Tianjin Branch.

We are the professional logistics
supplier you can depend on!
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Worldex Logistics Qingdao
Co., Ltd.

Logistics Service Provider
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S.F. Systems (Qingdao) Ltd

Global Vision Local Focus - "We're
here for you and we're there for
you.
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Weida Freight System Co., Ltd.

Carry your cargo with heart.
Customer's Satisfaction is our most
happiness.
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Way-Way International
Logistics Co., Ltd

Prudent, Practical, Combatant and
Innovative
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Shandong Land-Sea
International Transportation
Co., Ltd

Customers' satisfaction is
LAND-SEA's eternal pursuance!
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Jaguar Logistics Co. Ltd

Providing reliable and prompt freight
forwarding services at competitive
prices that result in Customer
satisfaction
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ESA Logistics (HK) Co., Ltd.

Your partner of choice for worldwide
consolidation, customs clearance,
warehousing and distribution or
specialty shipments.
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Lailon Enterprises Ltd

We adhere to the Principle of
"Customer First" and "Service
Best"
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Shenzhen Lancer Logistics
Co., Ltd.

Success, just beginning for us.
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Fohang Wonstar Shipping (HK) Co., Ltd.

Co-creating value with customers,
developing with employees and
promoting harmony with society.
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Sunway Logistics (Shenzhen)
Co., Ltd.

Be customer-oriented, always
putting the satisfaction of customers
first
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Wagon Shipping (HK) Limited

To provide you with immediate,
efficient, high quality service.
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It pays to be big in container shipping these days

 


BIG is beautiful in the container shipping sector. At least that's what many industry insiders today are saying.

Regardless of where one stands on the issue of whether size matters in the shipping industry or not, the results are hard to ignore. If we look at operating profits alone, it would appear that bigger is better...

Maersk Line, the world's largest shipping line, and CMA CGM, the world's third largest, topped all carriers in their financial performance for the first quarter of the year....

 click image to enlarge 

MSC, which is currently ranked number two in terms of fleet size, is privately owned and has released no details of its financial performance to date.

Marseilles-based CMA CGM posted a first quarter operating profit of US$196 million, according to Alphaliner, which was good enough to give it an operating margin of 5.1 per cent, which is impressive for a shipping line.

Maersk came in at a close second with a profit of $189 million and a margin of three per cent.

Drewry Maritime Research, in its Container Insight publication, said that the "big three"ˇXMaersk, MSC and CMA CGMˇXall boast strong economies of scale, which on the transpacific trade currently translates into deploying ships that are 32 per cent larger than the average vessels sailed by other carriers on the route.

The average active vessel size of the top three liners reaches 8,550 TEU, while the overall average ship size in the industry is only 6,490 TEU, according to Drewry's figures.

Drewry believes this explains why CMA CGM and Maersk were able to earn more than other major carriers at EBIT (earnings before interest and tax) level in 2012, and continued to surpass other smaller rivals in terms of profitability in the first quarter of this year.

"It also explains why carriers, such as APL and Hanjin, whose transpacific cargo accounts for a large proportion of their total liftings (29 per cent and 41 per cent respectively in the first quarter of 2013), yet operate vessels well below the average size, were amongst the poorest," said the Drewry's report.

Alphaliner's figures show that Singapore's APL was the worst performer among the 18 carriers. It suffered an operating loss of $101 million and had a negative margin of -5.1 per cent in the first quarter.

Korea's Hanjin also lost $65 million in the first three months of the year with a negative margin of -3.4 per cent.

Alphaliner said that among the 18 carriers that posted their first quarter results, only four ˇV CMA CGM, Maersk, "K" Line and CCNI ˇV were able to operate in the black.

The operating losses for the rest of the 14 carriers totaled $762 million. The aggregate losses, while large, did show a significant improvement as the same 18 carriers surveyed had totally lost $1.89 million in the first quarter of 2012.

Another upside is that there is little risk of any carrier being forced out of the market in the near terms as all have reportedly been able to secure financial backing during this difficult operating period.




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