THAILAND's Regional Container Lines (RCL) has posted a first quarter net loss of THB494 million (US$15.74 million), drawn on revenues of THB2.91 billion, down nine per cent year on year.

The disappointing performance was attributed to over-capacity and rising fuel costs, resulting in an operating loss of THB530 million, reported London's Containerisation International. Yet it marked an improvement over last year's quarterly loss of THB714 million.

RCL shipper-owned container lifting volume dropped seven per cent to 268,403 TEU in the first quarter year on year. Carrier-owned container liftings fell 17 per cent year on year to 265,579 TEU, resulting in an overall decline of 12 per cent to 533,982 TEU.

As for the future, RCL said: "Despite the successful implementation of freight rate increase in March, container carriers still face the challenges of uncertain demand, rate volatility, bunker costs and potential vessels' impairment if the charter hire rates continue to decline."