Maersk Line, CMACGM, Lost $239million Last Year

The top container shipping lines returned a combined operating loss last year and market conditions do not bode well for the coming year, according to Alphaliner.
Research conducted by the analyst has revealed that the 21 carriers of the top 30 that publish financial results reported an overall loss of $239 million in 2012, with seven returning a profit.
CMA CGM returned the largest operating profit of $989 million, although this result includes its terminal business, which contributed $200 million.
Maersk Line came second, with a profit of $483 million.

The top container shipping lines returned a combined operating loss last year and market conditions do not bode well for the coming year, according to Alphaliner.
Research conducted by the analyst has revealed that the 21 carriers of the top 30 that publish financial results reported an overall loss of $239 million in 2012, with seven returning a profit.
CMA CGM returned the largest operating profit of $989 million, although this result includes its terminal business, which contributed $200 million.
Maersk Line came second, with a profit of $483 million.
Third was OOCL, with $230 million. APL was the worst performer in terms of operating profit, reporting a loss of $279 million.
In terms of margin, SITC was the best performer with a margin of 6.6%. CMA CGM was second with 6.2% and Wan Hai third with 4.5%. Bottom of the pile was CSAV, with a margin of -5.6%.
Although only seven of the 21 carriers reported a profit, the result is an improvement on the combined operating losses of $5.9bn that the 21 companies reported in 2011.
Looking to the year ahead, Alphaliner expected the carriers to have a tough time again.
“The carriers’ failure to return to profitability bodes poorly for their prospects in 2013, with demand and supply conditions expected to remain negative,” Alphaliner said.
“The recent rate increases implemented in mid-March on the key Asia-Europe trade have been eroded by poor vessel load factors and excessive competition, with spot freight rates on the Asia-North Europe trade currently 40% lower than at the same period last year.
“With sluggish demand growth on main trade lanes, coupled with a record level of new vessel deliveries this year, carriers are expected to continue to struggle to achieve positive results in 2013.”