The Containership Company reports US$3 million first half loss

TRANSPACIFIC start-up The Containership Company (TCC) has posted first half net loss of US$3 million for its first six months of operation.

TCC said the "outlook for box rates in the Pacific trades is uncertain due to significant new capacity coming into the market causing cargo volumes out of Taicang also to be more volatile.


"Supply of new capacity into the Pacific trades can also negatively affect the operating result for TCC," said the company, according to report from Paris-based Alphaliner.


TCC utilisation levels, calculated by Alphaliner, show April-to-August volume below market average, with load factors of 66 per cent. August volumes, said the Paris agency, have weakened further, despite raising vessel size from 2,800 to 3,000 TEU.


First half revenue came to $21 million raised from its Great Dragon Service shuttle from its Taicang port 60 miles upstream from Shanghai to Los Angeles, which only started mid-April.


But Alphaliner also reported that the Norwegian company used less working capital than expected. The company said this was partly due to the additional revenue from re-letting at a profit three out of TCC`s eight ships, which the company has chartered.


Oslo-based TCC raised $20.9 million in equity and still has cash of $8.5 million on hand. Apart from start up costs, most of its capital is currently tied up in containers, which it had acquired for about $9.8 million for the launch of its China-US service.


TCC is negotiating to sell and leaseback containers to secure capital and said that it is still evaluating opportunities for launching additional services this year.


TCC will include Ningbo in the rotation of the Great Dragon Service from 10 September in an effort to boost weak utilisation, which forced the company to abandon its original plan of single port-to-port loop.