Fuel and Freight Rates Must Rise Says Sixth Largest Container Shipping Group
(Handy Shipping Guide)
NOL Publish Gloomy Q1 Figures with an Honest Appreciation of the Situation
It is rare for us to see a financial statement which not only shows a parlous situation but indicates that, unless there is a major change in fuel prices and freight rates improve substantially the outlook remains poor and, when the forecast comes from the world’s sixth biggest container shipping company, one has to admire their candour and appreciate the seriousness of the situation. The first quarter figures from Neptune Orient Lines (NOL)hold very little good news for the industry.
NOL Group, the Singapore-based container shipping company which includes APL and APL Logistics, published Q1 figures today showing a jump in net losses from US$10 million for the period in 2011 up to a massive $254 million this year. The cause was put down purely to the drop off in freight rates due to the now inherent overcapacity which is plaguing the industry plus the rapid rise in fuel prices, figures achieved despite the estimated $100 million in costs saved by the group in the first three months of 2012. Read more here.
Date: May 11, 2012