CONTAINER leasing company CAI International has posted a 7.3 per cent year-on-year third quarter net income decline to US$15.3 million, drawn on record revenues of $53.9 million, up 20 per cent.
"Overall utilisation remained flat with the prior quarter, at 92 per cent, reflecting the moderate demand for containers that we experienced during the third quarter, which historically has been when demand has been strongest," said CAI chief executive Victor Garcia "We did not experience the peak season demand normally expected during the third quarter," he said.
Third quarter rental revenue rose 25 per cent year-on-year to $50.7 million. The increase in rental revenue was mainly due to an increase in the average number of owned containers on lease.
Quarterly management fee revenue was down 66 per cent to $1.5 million year on year because of a 56 per cent year-on-year reduction in the managed fleet to 290,000, the result of the company acquiring previously managed containers.
San Francisco-based CAI entered into a sale and lease-back transaction with a "shipping customer" for 9,000 TEU in the third quarter. The company also acquired 13,000 TEU of new containers during the quarter.
CAI is the fifth-largest global container lessor, with 1.1 million TEU either managed or owned.