Friday, August 10, 2012
NOL container line sees profits rise for the first time since 2010
Neptune Orient Lines' container division, APL, saw profits in the second quarter of 2012. These are the first profits for APL since 2010, according to Wednesday's announcement. APL experienced a bump after adjusting their freight rates higher and other cost cutting measures in the face of increasing fuel costs and overcapacity.
APL reported earnings of $7 million in the second quarter ended in June compared with a $53 million loss the same time last year. Due to $112 million in restructuring monies, parent company NOL experienced a net loss of $118 million.
The shipping division's average rates rose 3 percent in the second quarter due to improved industry cooperation that ended the destructive 2011 price wars. APL used 7 percent less fuel than a year earlier, even as volumes rose 4 percent, and saved $19 million in the first half of 2012 by refining how it returns empty containers to Asia, according to the announcement.
The company's Asia-Europe rates rose 15 percent in quarter two, and volumes dropped 4 percent. Transpacific route rates dropped 7 percent and volumes jumped 5 percent.
Container shipping lines, including APL and Maersk Line, raised Asia-Europe rates once in the first quarter and three times in the second quarter. On Asia-U.S. route, 15 lines including APL set a $500 per-TEU guideline for increases in annual contracts beginning after May, according to the Transpacific Stabilization Agreement.
NOL acquired six new 10,000-container ships in the first half, and four more are coming by the end of 2012. The firm will receive 20 new ships in 2013 and four in 2014. The vessel influx includes ten 14,000-container ships, half of which will be chartered out to Mitsui O.S.K. Lines.
NOL's fleet totaled 141 ships with a capacity of 630,000 TEUs at the end of June 2012.
For more of the Bloomberg story: bloomberg.com
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