Wednesday, October 20, 2010

Another Container Shipping Line Reports All Freight Sectors Up

NOL Turn in Third Quarter Profits
Shipping News Feature

SINGAPORE – Neptune Orient Lines (NOL), container shipping line and global logistics and supply chain operators, have released third quarter figures which demonstrate how fiscal measures taken by the major freight groups, coupled with a return to more usual trade figures as cargo levels rise, have turned losses into profits across the board in the industry.

As a group NOL have seen a massive $420+ million earnings reverse with a $139 million loss for the same period last year becoming a $282 million profit now. Revenue in the period was up 55% to $2.4 billion with net earnings for the three quarters so far standing at $283 million; last year that was an horrific loss well over half a billion dollars.

What is particularly encouraging is that earnings grew across both the supply chain division, APL Logistics, revenues rose 30% on both quarterly and three quarterly comparisons, and APL (formerly American President Lines) the liner division including ocean freight container movements, revenues up 60% on last quarter to $2.2 billion and to an overall $5.9 billion for the year so far (up 51%). So far this year more than 2 million FEU’s (forty foot equivalent units) have been carried, up 29%, with the average revenue for each container up 21% to $2,799.

APL President Eng Aik Meng commented:

“Volume and rates improved across most of our major trade lanes, and our ships were full. At the same time, we were well-prepared with vessel capacity and container equipment to meet our customer commitments.”

APL Logistics President Jim McAdam was also clearly pleased with his company’s performance, saying:

“Volumes increased in most of our business lines and freight rates improved in International Logistics.The result has been a continuation of the revenue growth we’ve realized throughout 2010, indicating a return to pre-economic downturn levels.”

The Group’s Core EBIT (Earnings Before Interest and Taxes) for the third quarter was US$319 million compared to a Core EBIT loss of US$115 million in the same quarter a year ago. For the first three quarters in 2010, Core EBIT was US$359 million compared to a Core EBIT loss of US$468 million for the first three quarters of 2009.