Global container shipping, terminals and logistics group Neptune Orient Lines (NOL) has reported a net profit of $ 35 million for the third quarter of 2008 (3Q08),down by 82 percent when compared to the third quarter of 2007 (3Q07).
Group EBIT fo 3Q08 of $ 52 million was down by 75 percent from 3Q07, While third-quarter revenue was up 16 percent year-on-year to $2.4 buillion.
Announcing the results, the NOL Grouop president and chief Executive officer, Mr Ron Widdows, said, “The Group continued to generate a profit in the third-quarter despite the deterioration fo conditions in the container shipping market.
“Reduced demand in key trade lanes, combined with coast increases and worsening global economic conditions hav adversely impacted our profir performance in the third-quarter.
“Against this challenging backdrop, our logistics business delivered satisfactory earnings in 3Q08.
In 3Q08, NOL’s container shipping arm, APL, recorded a 10 percent to 622,000 FEUs, driven Primarily by the intra-Asia trade, as well as and increase in Asia –Europe and transpacific backhaul volumes.
“APL volumes grew on a year-on-year basis but overall demand in the main trades slowed considerably in the third quarter”, said Mr.Widdows.
APL’s average third-quarter 2008 overall head haul utilization level was 90 percent compared to 99 percent in3Q07.Average revenue per FEU for container shipping in3Q08 was 8 percent higher year-on-year, reflecting continued fuel cost recovery measures. Total revenue for 3Q08 rose by 22 percent over the previous year to $2.04 billion and by 28 percent for the year-to-date to $5.98 billion.
Crore Asia-Europe head haul freight rates(excluding bunder adjustment factors) came under severe downward pressure as demand softened and the trade anticipated the high number of large container vessels due to inter service in 2009/2010.
Head haul volumes in the transpacific contracted I 3Q08; a factor which may be further compounded by the global financial crisis and economic slowdown.
“We are acting quickly and decisively to tram capacity and reconfigure our service networks, adjusting port calls and service loops and with drawing a number of vessels from service. These actions will reduce our costs and better align.APL’S service networks to the lower demand levels currently being experienced,” he stated.
Group EBIT fo 3Q08 of $ 52 million was down by 75 percent from 3Q07, While third-quarter revenue was up 16 percent year-on-year to $2.4 buillion.
Announcing the results, the NOL Grouop president and chief Executive officer, Mr Ron Widdows, said, “The Group continued to generate a profit in the third-quarter despite the deterioration fo conditions in the container shipping market.
“Reduced demand in key trade lanes, combined with coast increases and worsening global economic conditions hav adversely impacted our profir performance in the third-quarter.
“Against this challenging backdrop, our logistics business delivered satisfactory earnings in 3Q08.
In 3Q08, NOL’s container shipping arm, APL, recorded a 10 percent to 622,000 FEUs, driven Primarily by the intra-Asia trade, as well as and increase in Asia –Europe and transpacific backhaul volumes.
“APL volumes grew on a year-on-year basis but overall demand in the main trades slowed considerably in the third quarter”, said Mr.Widdows.
APL’s average third-quarter 2008 overall head haul utilization level was 90 percent compared to 99 percent in3Q07.Average revenue per FEU for container shipping in3Q08 was 8 percent higher year-on-year, reflecting continued fuel cost recovery measures. Total revenue for 3Q08 rose by 22 percent over the previous year to $2.04 billion and by 28 percent for the year-to-date to $5.98 billion.
Crore Asia-Europe head haul freight rates(excluding bunder adjustment factors) came under severe downward pressure as demand softened and the trade anticipated the high number of large container vessels due to inter service in 2009/2010.
Head haul volumes in the transpacific contracted I 3Q08; a factor which may be further compounded by the global financial crisis and economic slowdown.
“We are acting quickly and decisively to tram capacity and reconfigure our service networks, adjusting port calls and service loops and with drawing a number of vessels from service. These actions will reduce our costs and better align.APL’S service networks to the lower demand levels currently being experienced,” he stated.
