RCL’s 1st quarter profits drop 47%
Regional Container Lines said Tuesday that higher bunker costs and lower freight rates in the Intra/Asia market led to its first quarter net income slipping 47 percent, when measured in U.S. dollars, to $17.8 million, from $33.5 million in the same period last year.
First quarter revenue was flat at $128.4 million despite the Thailand-based carrier’s volumes increasing 8 percent to 575,279 TEUs.
“The freight rate for Intra/Asia trade had been under pressure since the fourth quarter 2005 when more tonnage had phased into the main routes at the time when trade went into the traditional slow season. The freight rates for the first quarter had edged down further but held steady by end of March as volume had returned very strongly,” RCL said.