China Shipping reports drop in profits

China Shipping reports drop in profits China Shipping Container Lines Co. reported a 96 percent drop in profit for the first half of the year when compared to the same period in 2005 despite a 3.5 percent increase in turnover.
   CSCL said it had a first half profit after taxes of $10.4 million (82.8 million RMB) on turnover of $1.76 billion (13.97 RMB).
   CSCL attributed the fall in profit to “falling of freight rates in main trade lanes resulting from the pressure from the excess supply of container shipping capacity over demand in the container shipping market, the rising of operating costs such as fuel price and port charges and RMB appreciation.”
   CSCL said it moved 2.65 million TEU in the first half of 2006, a 20.6 percent increase over that of the same period in 2005.