Regional Container Lines (RCL) plunged into the red in 2011 as continued overcapacity capped freight rates and rising bunker costs hit the company.
The Bangkok-listed regional line posted a net loss of THB780m ($25.8m) as against a net profit of THB465m in 2010. Revenue, however, rose slightly to THB15.24bn compared to THB16.27bn a year ago.
“Like all other container carriers in the industry, with the current trend of weak shipping environment and stiff competition, RCL is pressured to face the challenge of slowing trade demand, excess vessel capacity, weak freight rates, and high fuel costs,” said Sumate Tanthuwanit, managing director of RCL.
For the full year 2011, RCL's shipper owned container (SOC) liftings declined 5% to 1,119,123 teu while its carrier owned container (COC) liftings decreased 10% to 1,219,633 teu, resulting in total liftings decrease of 7% at 2,338,756 teus.
RCL added that the cost of freight and operation in the fourth quarter of 2011 was down by 3% at THB3.2bn quarter-on-quarter mainly due to the decline in liftings.
The Bangkok-listed regional line posted a net loss of THB780m ($25.8m) as against a net profit of THB465m in 2010. Revenue, however, rose slightly to THB15.24bn compared to THB16.27bn a year ago.
“Like all other container carriers in the industry, with the current trend of weak shipping environment and stiff competition, RCL is pressured to face the challenge of slowing trade demand, excess vessel capacity, weak freight rates, and high fuel costs,” said Sumate Tanthuwanit, managing director of RCL.
For the full year 2011, RCL's shipper owned container (SOC) liftings declined 5% to 1,119,123 teu while its carrier owned container (COC) liftings decreased 10% to 1,219,633 teu, resulting in total liftings decrease of 7% at 2,338,756 teus.
RCL added that the cost of freight and operation in the fourth quarter of 2011 was down by 3% at THB3.2bn quarter-on-quarter mainly due to the decline in liftings.