Start-Up Container Line Loses $3 Million

The Containership Co., which began no-frills service from China to Los Angeles in April, reported a $3 million net loss on $21.2 million in revenue during the first half of its first year.

TCC formed last year and started service in mid-April with weekly sailings from Taicang, 40 miles downriver from Shanghai, to Los Angeles. This month the carrier is adding a second route from Ningbo to Los Angeles and has said it is considering additional services.

By The Numbers: Containerized Ocean Trade - Southern California Ports.

The carrier said its loss was “primarily a result of start-up costs related to the first months of business.” The company said it used less working capital than expected to launch its no-frills, port-to-port service with chartered ships of 2,500-3,500 20-foot equivalent units capacity.

TCC spent $9.8 million on containers for its service and is negotiating on a sale-leaseback of the containers to free up working capital.

The company said that after raising $20.9 million in equity from investors, it still had $8.5 million in cash at the end of June.

-- Contact Joseph Bonney at jbonney@joc.com.