NOL loss narrows as shipping volume rises 46%

NOL loss narrows as shipping volume rises 46%    Neptune Orient Lines, parent of container carrier APL and APL Logistics, reported a $98 million first quarter net loss, compared to a $245 million loss in the same 2009 period.
   Revenue was $2.1 billion for the quarter, up 36 percent from the $1.5 billion a year ago.
   'The result, while reflecting improvement, still is not satisfactory,' said Ronald D. Widdows the NOL Group president and chief executive officer. 'But the increase in volume and revenue provides a foundation for turning around our performance as the global economy recovers and we begin to see the effects of rate and asset utilization improvement, particularly in the transpacific trade.'

Widdows

   APL reported a 46 percent increase in volume year-on-year, as global trade demand strengthened and average revenue per 40-foot equivalent unit increased 2 percent. The liner company saw a 39 percent increase in revenue to $1.8 billion.
   'We began to see more positive movement in the first quarter on rates and volumes across our major trade lanes,' said Eng Aik Meng, APL president.
   Rates lagged in some trade lanes, in large part due to a legacy of contracts that were signed during the downturn of 2009, he said. Most of these contracts will expire in May and are being renegotiated.
   Revenue for APL Logistics increased 23 percent in the first quarter to $296 million, and NOL’s terminal business said revenue increased 40 percent to $157 million.
   The company said volume and freight rates continue to improve. “If this trend continues, NOL expects to return to profitability for the full year. However, several risk factors remain — including rising fuel costs, the global economy and the relationship between supply and demand. The group will continue to press on with its cost savings, productivity and yield management programs.”