SITC International, an intra-Asia shipping logistics company that provides integrated transportation and logistics solutions, reported a 44.1 percent increase to US$113.1 million in net profit in 2013.

Total revenue for the year, after inter-segment eliminations, increased 4.5 percent year-on-year to $1.26 billion, attributable to the continuous growth in shipping volume and freight forwarding volume in both sea-freight logistics and land-based logistic businesses.

Basic earnings per share for the year were 4.35 cents, up 34.3 percent from 3.24 cents the previous year.

Commenting on SITC International’s annual results for 2013, Yang Shaopeng, chairman and executive director, said: “Owing to the uncertainties surrounding the macro-economic landscape, the global shipping industry was still lingering at the bottom in 2013. The domestic and international container shipping markets will continue to suffer from shortages in demand, while the total shipping capacity for the market continues to expand rapidly, inducing volatility to the whole industry.

“Despite this, benefiting from higher economic and trade growth in the PRC and Southeast Asian countries, the intra-Asia container shipping market, which is the focus of SITC International in sea freight logistics, still maintained a remarkable growth.

“During the year under review, notwithstanding intense market competition, we stay focused on our core businesses and delivery of our unique and innovative services. We continued to achieve a stable growth in our shipping volume.’’

Breaking down by business segments, revenue of sea freight logistics business, before inter-segment elimination, increased 0.9 percent year-on-year to $972.7 million for the year, driven by an increase in shipping volume, a decrease in the average freight rate

Segment gross profit reached $46.4 million, down by $3.4 million from that of 2012. Segment gross profit margin thereby narrowed from 5.2 percent in 2012 to 4.8 percent in 2013.

Average freight rate declined from $539/TEU in 2012 to $486/TEU in 2013. Total sea freight shipping volume rose by 11.7 [ercent year-on-year to 1.98 million TEUs.

Revenue of land-based logistics business, before inter-segment elimination, decreased by 1.2 percent year-on-year to $730.7 million. The decline primarily reflected the decrease in average freights forwarding rate, as well as the expansion of third party logistics business and other land-based logistics business.

Segment gross profit increased by five percent year-on-year to $96.5 million. Segment gross margin for the year widened to 13.2 percent from 12.4 percent.

Land-based freight forwarding volume recorded a year-on-year increase of 9.8 percent to 1.53 million TEUs.