UASCÆs profits down in 2006, expansion continues
Kuwaiti ocean carrier United Arab Shipping Co. said its profits declined in 2006 due to lower freight rates and high fuel prices.
'Our profit went down in 2006 compared with 2005. It was a tough year, but under the circumstances we did well,' said Ken Bloch Soerensen, UASC's chief executive officer, in an interview with Gulf News.
Soerensen didn't provide financial figures, but said freight rates slumped as new tonnage entered the east/west trades.
'It is a global trend. This year also is going to be very tough for the industry. But we could see the market flattening in 2009-10,' he said.
Despite the current downturn in the liner market, Soerensen said the company would continue with its expansions plans. UASC is scheduled to take delivery of eight 6,800-TEU ships in 2008, which will serve the Gulf, Europe and East Asia routes.
'We are making long-term investments. During its 30-year lifespan a ship is going to run into different business cycles,' Soerensen said.
UASC’s profits down in 2006, expansion continues
