NOL loses $240 million in 1st quarter
Singapore’s NOL, parent of ocean carrier APL, said last week it expects its first quarter loss to be steep and even surpass those in the fourth quarter of 2008, Reuters reported Friday.
The loss could reach $240 million for the first three months of the year, worse than the $149 million it lost in the last quarter of 2008. NOL also said it expects its full-year loss to exceed analysts' forecasts from the beginning of the year. The news agency reported the average forecast of 12 analysts had NOL losing about $255 million for the whole of 2009.
However, losses should start narrowing in the second half of the year as demand is expected to pick up.
The losses can be squarely pinned on declining rates and volume in APL’s key trades. Lauded as a line that was leading the charge for better yield per TEU, APL has been hurt by rate drops on the transpacific and Far East/Europe lanes. At the end of March, American Shipper reported APL’s first quarter volumes dropped 30 percent, while rates dropped 14 percent.
NOL loses $240 million in 1st quarter
