Neptune Orient Lines (NOL) , the world's seventh largest container shipping firm, reported a first quarter net loss on Friday, hurt by a soft Lunar New Year period and rising fuel costs.
The company, around two-third owned by Singapore state investor Temasek Holdings, posted a net loss of $10 million compared to a net loss of $98 million a year ago, missing market expectations of a net profit of $31.33 million.
The firm's first quarter revenue was up 16 percent to $2.4 billion, as compared to $2.1 billion in the year-ago period.
APL, the liner shipping unit of NOL, reported a 9 percent increase in first quarter shipping volume year-on-year, with vessel utilisation rates of 92 percent.
"But our emphasis must remain on operating efficiency, as well as slow-steaming our ships to conserve fuel and counteract the effect of rising fuel prices," said APL President Eng Aik Meng in a statement. Slow-steaming is an industry practice that refers to cutting travelling speed to save fuel and emissions.
Looking ahead, NOL expects increased operating costs and competitive rate pressures to continue for the near term on uncertain market conditions.
However, the firm will continue to focus on operating efficiency, cost reduction and high vessel utilisation, it said in a statement.
Global container shipping firms were squeezed by a sharp fall in rates, driven by over-capacity and limited demand, since the start of the year and rising fuel charges. However the sector is expected to rebound later this year.
Bunker fuel prices BK380-B-SIN, which can make up anywhere from 10 to 70 percent of operating costs depending on the type of vessel, climbed to 2-1/2 year highs in April although the recent rout in oil prices had helped ease the pressure a bit.
The global shipping industry has rebounded strongly from the worst downturn in history in 2009 as the recession hit global trade and forced many companies to lay up ships and cut jobs.
The company, around two-third owned by Singapore state investor Temasek Holdings, posted a net loss of $10 million compared to a net loss of $98 million a year ago, missing market expectations of a net profit of $31.33 million.
The firm's first quarter revenue was up 16 percent to $2.4 billion, as compared to $2.1 billion in the year-ago period.
APL, the liner shipping unit of NOL, reported a 9 percent increase in first quarter shipping volume year-on-year, with vessel utilisation rates of 92 percent.
"But our emphasis must remain on operating efficiency, as well as slow-steaming our ships to conserve fuel and counteract the effect of rising fuel prices," said APL President Eng Aik Meng in a statement. Slow-steaming is an industry practice that refers to cutting travelling speed to save fuel and emissions.
Looking ahead, NOL expects increased operating costs and competitive rate pressures to continue for the near term on uncertain market conditions.
However, the firm will continue to focus on operating efficiency, cost reduction and high vessel utilisation, it said in a statement.
Global container shipping firms were squeezed by a sharp fall in rates, driven by over-capacity and limited demand, since the start of the year and rising fuel charges. However the sector is expected to rebound later this year.
Bunker fuel prices BK380-B-SIN, which can make up anywhere from 10 to 70 percent of operating costs depending on the type of vessel, climbed to 2-1/2 year highs in April although the recent rout in oil prices had helped ease the pressure a bit.
The global shipping industry has rebounded strongly from the worst downturn in history in 2009 as the recession hit global trade and forced many companies to lay up ships and cut jobs.