SITC profit rockets 230%, exceeding US$1 billion

SITC International, the parent of Hong Kong-based intra-Asia carrier SITC Container Lines, has seen its 2021 net profit surge by 230% year-on-year to US$1.17 billion, as liner operators achieved a second straight year of record earnings.

Revenue generated by the container shipping and logistics business was up 79% to US$2.98 billion.

The increase was a result of container shipping volumes increasing by 20% to 3.14 million TEU in 2021, while freight rates, excluding slot exchange fee income, increased by approximately 52% to US$826.90/TEU in 2021.

SITC chairman Yang Shaopeng said that Covid-19-related logistical bottlenecks caused sharp increases in vessel and container leasing costs, placing upward pressure on freight rates.

He said, “The company optimised its lanes by flexibly deploying shipping capacity and closely monitoring port conditions, thereby providing customers with consistent services in accordance with established contracts in good faith.”

SITC took delivery of two container ships in 2021, and commissioned 20 feeder vessel newbuildings at Yangzijiang Shipbuilding in China and Dae Sun Shipbuilding & Engineering in South Korea.

Yang said that global GDP is expected to grow in 2022, while container availability remains tight, and these will maintain the supply and demand balance of container shipping logistics in Asia.