CHINA Shipping Container Line (CSCL) first half profit dropped 97 per cent to US$2.2 million, drawn on revenues of $2.5 billion down 9.2 per cent year on year.
CSCL attributed the decline to weak Asia-Europe and Mediterranean container freight rates and overcapacity.
"Freight rates for Asia-Europe trade lanes hit record low levels under the impact of new shipping capacity put into market amid a weak economic growth momentum in the eurozone," said CSCL.
"In second half of 2015, international trade still won't be cheerful."
During the first half, CSCL is said to have carried just under four million TEU, a one per cent increase year on year.
CSCL recently announced plans to expand into Sri Lanka with operations at a regional trade hub in order to improve on its flexibility.
The news came comes right after the Chinese stock market crashed that could have the potential to cripple China economically and ravish the wider supply chain.
Press Trust of India previously reported that CSCL has placed an order for eight 13,500 TEU ships for around $930 million.
Of the total fleet, containerships with capacity over 4,000 TEU each accounted for 90 per cent of CSCL's fleet.
As of June 30, the company's total capacity stood at more than 900,000 TEU, with an average age of 8.3 years.
Source : HKSG.