NOL forecasts another year of significant losses
Neptune Orient Lines expects to remain deep in the red well in to next year as depressed conditions in the container trades show no sign of easing.
The Singapore line lost $139m in the third quarter, compared with a profit of $35m in the same period of 2008. That was the last time the company made money, with the fourth quarter of last year marking the start of the worst-ever slump for the entire industry.
Revenue for the third quarter fell 34% to $1.56bn, while for the year to date, it was down 36% to $4.5bn.
That brought the cumulative loss for the year to $530m, compared with a profit of $232m in the first nine months of 2009.
“Despite some improvements in certain trades, container shipping freight rates remain at uneconomic levels,” said NOL president and chief executive Ron Widdows.
The company said it anticipated a continuation of adverse business operating conditions, despite some recent improvements in volumes and freight rates in certain trade lanes.
“In view of the severity of the downturn in container shipping, the company expects to incur significant losses in the fourth quarter of 2009 and at least through the first half of next year,” NOL warned.
NOL’s container shipping arm APL reported that average revenue per 40 ft container was 29% lower at $2,219 in the third quarter, while volumes were 6% down at 586,000 feu.
The Singapore line lost $139m in the third quarter, compared with a profit of $35m in the same period of 2008. That was the last time the company made money, with the fourth quarter of last year marking the start of the worst-ever slump for the entire industry.
Revenue for the third quarter fell 34% to $1.56bn, while for the year to date, it was down 36% to $4.5bn.
That brought the cumulative loss for the year to $530m, compared with a profit of $232m in the first nine months of 2009.
“Despite some improvements in certain trades, container shipping freight rates remain at uneconomic levels,” said NOL president and chief executive Ron Widdows.
The company said it anticipated a continuation of adverse business operating conditions, despite some recent improvements in volumes and freight rates in certain trade lanes.
“In view of the severity of the downturn in container shipping, the company expects to incur significant losses in the fourth quarter of 2009 and at least through the first half of next year,” NOL warned.
NOL’s container shipping arm APL reported that average revenue per 40 ft container was 29% lower at $2,219 in the third quarter, while volumes were 6% down at 586,000 feu.