Neptune Orient Lines Ltd., Southeast Asia's biggest container carrier, reported its first decline in traffic in almost three years because of slowing demand for Asian-made consumer goods in Europe and the U.S. Container volume fell 1 percent to 186,500 cargo-boxes in the four weeks ended Oct. 17, the Singapore-based company said in a statement to the city's stock exchange yesterday. That was the first decline since the beginning of 2006.
Neptune Orient, like A.P. Moeller-Maersk A/S, the world's largest container line, plans to cut capacity as housing slumps and rising job insecurity damps demand for shipments of furniture, consumer electronics and toys in the U.S. and Europe. The shipping line said last month that it was likely heading for its first operating loss in six years this quarter.
Next year may be even worse,'' said Gideon Lo, an analyst at DBS Vickers Hong Kong Ltd. Many container shippers may book losses because global trade will probably have negative growth on the global recession and oversupply.''
The shipping line has tumbled 67 percent this year in Singapore trading on concerns about slowing trade. The stock rose 3.2 percent today to S$1.29 after China yesterday pledged a 4 trillion yuan ($586 billion) spending package to prop up growth. The traffic numbers were released after the market close.
Neptune Orient boosted its average rate per forty-foot equivalent unit 9 percent in the four-week period to $3,186. The increase was largely because of higher fuel surcharges, the company said.
The company boosted its volumes on intra-Asian trade routes in the period, it said without elaboration.
In the year through Oct. 17, shipping volume rose 11 percent to 2.1 million boxes. Rates climbed 12 percent to an average of $3,038.
Neptune Orient, like A.P. Moeller-Maersk A/S, the world's largest container line, plans to cut capacity as housing slumps and rising job insecurity damps demand for shipments of furniture, consumer electronics and toys in the U.S. and Europe. The shipping line said last month that it was likely heading for its first operating loss in six years this quarter.
Next year may be even worse,'' said Gideon Lo, an analyst at DBS Vickers Hong Kong Ltd. Many container shippers may book losses because global trade will probably have negative growth on the global recession and oversupply.''
The shipping line has tumbled 67 percent this year in Singapore trading on concerns about slowing trade. The stock rose 3.2 percent today to S$1.29 after China yesterday pledged a 4 trillion yuan ($586 billion) spending package to prop up growth. The traffic numbers were released after the market close.
Neptune Orient boosted its average rate per forty-foot equivalent unit 9 percent in the four-week period to $3,186. The increase was largely because of higher fuel surcharges, the company said.
The company boosted its volumes on intra-Asian trade routes in the period, it said without elaboration.
In the year through Oct. 17, shipping volume rose 11 percent to 2.1 million boxes. Rates climbed 12 percent to an average of $3,038.