Neptune Orient Lines container volumes plunged a huge 35% in the first six weeks of the year.
For the six week period from 27 December 2008 to 6 February 2009, NOL said that global container volumes carried by its liner arm APL were 188,400 feu, a drop of 35% year-on-year.
“The decrease in volume is due to the continued deterioration in demand on all major trade lanes and an earlier Lunar New Year this year compared to the prior year,” NOL said.
The plunge in box volumes at the start of this year sees a further acceleration in the decline of the container trades, with the Singapore company having reported a 24% drop for the final period of 2008.
The decline in volumes outstripped capacity on major trades announced by APL in October last year. The line cut 20% of capacity from the Transpacific trade and 25% from the Asia – Europe trade, laying up tonnage.
As volumes have continued to tumble, NOL has said it is taking out a further 20% of capacity on the Transpacific trade and 3% on Asia – Europe. Last month, the line said that it had so far laid-up 15 vessels.
The company has also delayed the delivery of newbuildings that it has both ordered directly and through long-term charters with other owners.
Average freight rates, across all trades, paid to APL dropped by 11% in the first period of the year to $2,646 per feu, 11% lower than the same period a year earlier.
“Average revenue per feu declined over the same period last year due to a combination of lower bunker fuel cost recovery in line with lower bunker fuel prices, and declining core freight rates, particularly on the Asia-Europe and Intra-Asia long-haul routes, since the beginning of 2008,” NOL said.
For the six week period from 27 December 2008 to 6 February 2009, NOL said that global container volumes carried by its liner arm APL were 188,400 feu, a drop of 35% year-on-year.
“The decrease in volume is due to the continued deterioration in demand on all major trade lanes and an earlier Lunar New Year this year compared to the prior year,” NOL said.
The plunge in box volumes at the start of this year sees a further acceleration in the decline of the container trades, with the Singapore company having reported a 24% drop for the final period of 2008.
The decline in volumes outstripped capacity on major trades announced by APL in October last year. The line cut 20% of capacity from the Transpacific trade and 25% from the Asia – Europe trade, laying up tonnage.
As volumes have continued to tumble, NOL has said it is taking out a further 20% of capacity on the Transpacific trade and 3% on Asia – Europe. Last month, the line said that it had so far laid-up 15 vessels.
The company has also delayed the delivery of newbuildings that it has both ordered directly and through long-term charters with other owners.
Average freight rates, across all trades, paid to APL dropped by 11% in the first period of the year to $2,646 per feu, 11% lower than the same period a year earlier.
“Average revenue per feu declined over the same period last year due to a combination of lower bunker fuel cost recovery in line with lower bunker fuel prices, and declining core freight rates, particularly on the Asia-Europe and Intra-Asia long-haul routes, since the beginning of 2008,” NOL said.