SITC International Holdings, a company specialising in the intra-Asia container trades, has posted a 44 per cent rise in net profit for 2013 to US$113.1 million, compared to $78.5 million the previous year, on 4.5 per cent higher revenue to $1.27 billion.
SITC's 2013 profit is up 44pc on sea freight volume growthSITC International Holdings, a company specialising in the intra-Asia container trades, has posted a 44 per cent rise in net profit for 2013 to US$113.1 million, compared to $78.5 million the previous year, on 4.5 per cent higher revenue to $1.27 billion.
Affecting the result was a $17 million provision for impairment made against its dry bulk vessels in 2012, reported Seatrade Global.
Revenue from the group's dominant sea freight logistics business was up slightly to $972.7 million from $964.1 million in 2012 driven by an increase in freight volume from 1,774,054 TEU in 2012 to 1,981,576 TEU.
However, average container shipping freight rates fell from $539 per TEU in 2012 to $486 per TEU last year.
On the other hand, the land-based logistics business saw revenue decline to $730.7 million from $739.6 million the previous year, yet profit for the segment still managed to increase to $58.3 million.
Freight forwarding volume grew by 9.8 per cent year on year to 1,530,471 TEU last year.
"The intra-Asia container shipping market still maintained a remarkable growth benefiting from higher economic and trade growth in the PRC (People's Republic of China) and Southeast Asian countries, and remained the world's largest shipping market," SITC said in a stock market filing.
Looking ahead, is said, "Shipping industry worldwide is expected to face various difficulties and challenges in 2014. The management of the group remains confident in Asia's operating environment and performance of container shipping logistics in 2014."