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APL’s volumes, rates fall to open 2009

APLÆs volumes, rates fall to open 2009

Neptune Orient Lines said cargo volumes being handled by its APL subsidiary in the first six weeks of 2009 were 35 percent lower than what was handled in the same 2008 period.

   In its regular monthly operational update, the company said volumes for Dec. 27 through Feb. 6 totaled 188,400 40-foot equivalent units compared to 289,400 FEU the prior year.

   Average revenue per FEU also fell 11 percent to $2,646 per FEU from $2,989 per FEU in the comparable period a year earlier.

   “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 prior year,” said NOL. “Average revenue per FEU declined over the same period last year due to a combination of lower bunker fuel cost recovery (bunker adjustment factors) 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.”