China Shipping Reports First-Quarter Loss

China Shipping Reports First-Quarter Loss

China Shipping Container Lines said its net loss for the first quarter narrowed 24.1 percent from a year earlier to $22.5 million, after three consecutive quarters of profits.

CSCL's quarterly report showed that net cash reserves decreased approximately $277 million, mainly due to increased vessel construction and purchase of fixed assets. The report gave no details, but CSCL has recently added several ships with capacities up to 14,000 20-foot equivalent units.

The company returned to the black last year after the 2009 market downturn. CSCL posted net profit in 2010 of $650 million as revenue rose 76.3 percent to $5.4 billion.

CSCL is China's largest container carrier by capacity. The company, listed on the Hong Kong and Shanghai stock exchanges, is a unit of Shanghai-based China Shipping (Group), the world's eighth-largest shipping company by capacity and the parent of China Shipping Development.

-- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @JosephBonney.