Regional Container Lines posts Q1 results

Regional Container Lines (RCL) stayed in the red in the first quarter of the year as overcapacity and fuel costs continued to take their toll, Seatrade Asia online reports. Bangkok-headquartered RCL recorded a first quarter net loss of THB494m, down from THB714m in the first quarter of 2011.

“Continued overcapacity and rising fuel costs have contributed to the operating loss of THB530m in 1Q2012, before a gain on sales of fixed assets,” said RCL.

The Thai company expects challenging business conditions to continue. “Despite the successful implementation of freight rates increase in March, container carriers still face the challenges of uncertain trade demand, freight rate volatility, uptrend in bunker costs and potential vessels’ impairment, if the charter hire rates continue to decline in the coming period,” it said.