Sales may fall 44% at shipping giant
March 18, 2009
CHINA Shipping Development Co, the dry-bulk arm of the nation’s second-biggest shipping group, expects sales to tumble 44 percent this year as a slowing economy saps demand for raw materials.
Sales will likely drop to 9.83 billion yuan (US$1.4 billion) from 17.6 billion yuan last year, the Shanghai-based company said in a statement to the city’s stock exchange yesterday. That’s lower than all 18 analyst estimates compiled by Bloomberg News.
Dry-bulk shipping rates have fallen 83 percent from a record in May, as China’s waning growth curbs demand for iron ore and coal. China Shipping Development has already agreed to price cuts of 39 percent for cargos equal to about two-thirds of its 2008 domestic dry-bulk volume.
The company expects operating costs to fall 39 percent this year to 6.81 billion yuan. It will sell 5 billion yuan of mid-term notes in the first half.
The shipping company plans to add 19 vessels this year, including 14 oil tankers and five dry-bulk ships. The company had a fleet of 167 ships as of December 31.
Net income rose 17 percent last year to 5.37 billion yuan after the company locked in domestic bulk rates at the beginning of the year. Shareholders will get a 0.30-yuan dividend per share.
The shipping line dropped 7.1 percent to HK$6.59 (85 US cents) in Hong Kong trading yesterday before the earnings announcement. It has lost 65 percent in the past year, compared with a 71-percent decline for China Cosco Holdings Co, the country’s largest bulk-shipping line.
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TNT launches rapid road service for China
February 16, 2009
Source : XINHUA
THE world’s express giant TNT launched a faster and more cost-efficient road distribution service today in China eying the potential demands spurred by China’s 4-trillion-yuan stimulus package.
TNT’s wholly-owned subsidiary TNT-Hoau will deliver the “Day-Definite Road Service,” which targets corporate customers who need shipments arriving on time and in good condition.
The service costs about one-third of the air cargo rate and is faster than less-than-truckload road services which cannot guarantee arrival times.
All shipments will be bar-coded to allow customers to track and trace their shipments via the Internet and this also saves on supply chain costs. The day-definite trucks are equipped with Global Positioning System technology to enable real-time tracking of each truck throughout the process.
The new service will be offered between 115 depots covering the key economic areas of the Yangtze River Delta, the Bohai Economic Rim and the Pearl River Delta regions.
TNT-Hoau plans to increase the service to more than 260 depots by July 2009.
China’s government has issued a 4-trillion-yuan stimulus package to boost domestic demand, a sizable proportion of which will be directed at the construction of transport infrastructure such as building new roads.
“We invest heavily in road and air services which enables us to shift our focus flexibly during the global financial crisis,” said Michael Drake, Regional Managing Director of TNT North Asia.
“When the Chinese government decided to bolster domestic industries, we complement trusted less-than-truckload road services to boast our full-service offerings capability in the country,” Drake said
Tags: courier, ChinaRelated Posts:
Chinese Ore Demand Leads to Further Freight Increases
February 11, 2009
The Baltic Dry Index – a composite of 22 main freight routes – leapt over 10% on 9 February to 1,815 aided by rising Capesize rates. The jump came on Monday, a day that is traditionally subdued in activity terms as shipping companies concentrate on vessel position lists.
Tubarao-China hit $25/tonne on Monday, up over $5/t in under a week to its highest level since early October. The long-term average of Tubarao-China since the beginning of 2003 is $38/t, brokerage Simpson Spence & Young tells Steel Business Briefing. Brazil-Rotterdam shipments reached $11.50/t, a rise of almost $3/t since 4 February, while Australia-China was up around $2.80/t at $10/t.
Brokers attribute the gains to stronger Chinese iron ore demand, primarily out of Brazil, and increased congestion: around 50 Capesize vessels are waiting to berth off China. Chinese ore stocks at port have increased slightly over the last few weeks, to just over 60mt according to SSY, but this is unsurprising because of the higher activity.
Tonnage in the Atlantic basin also looks tight in the short-term – according to brokers. This means there are less open ships from charterers to choose from, which normally pushes up rates.
Shipments of iron from India to China, normally carried out on Supramax vessels with a deadweight of between 50-60,000 t, have also climbed as a result of stronger chartering interest. Charterers are paying around $14,000/day for the route, equivalent to around $11/t. This is substantially up from the October bottom of $2,000/day.
Source: Steel Business Briefing
http://www.steelbb.com
Tags: China, iron ore, ShippingRelated Posts:
Investment in China railways set to almost double
January 14, 2009
China constantly developing raiway network making way for better-cheaper-faster transports, and further integrating the second tier with the East Coast. Here is an update about developments in raiway:
China plans to almost double its investment in railways to about RMB600 billion ($87.9 billion).
The money is part of the RMB 4 trillion stimulus package announced by the government.
According to a national conference on railway construction in 2008, China spent RMB330 billion on railways.
Minister of Railways Liu Zhijun at the meeting said part of next year’s RMB 600 billion would be used to build a total of 5,148 km of new railways.
The minister also said the money will help put five passenger-dedicated, high-speed lines into operation next year. These rails will link the central city of Wuhan to the southern city of Guangzhou; Zhengzhou in central Henan Province to Xi’an in northwest Shaanxi Province; Ningbo to Wenzhou, both in east China’s Zhejiang Province; Wenzhou to Fuzhou in southern Fujian Province; and Fuzhou to Xiamen, also in Fujian.
The ministry also planned to start 70 new projects next year with part of the money. The minister said those projects will need a total investment of RMB1.5 trillion to be completed.
Railways inside the country will reach 110,000 km by 2012.
Source: China View
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Tianjin Port cargo throughput up in 2008
January 14, 2009
Tianjin Port, the largest in north China, handled 354 million tonnes — 8.5 million TEUs — in the past year, a year-on-year increase of 19.7%
When Tianjin Port opened in 1952, it was a small, shallow-water harbor capable of handling less than 700,000 tonnes of cargo a year. It has since become a deep-water port with many specialized berths.
In 2007, it handled 300 million tonnes of cargo and 7.1 million TEUs of container cargo, which put it in the sixth and 20th place in the world, respectively.
There are more than 400 ship movements at the port each month to all points of the globe.
Source: CargoNews Asia
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