SOUTH Korea's Hyundai Merchant Marine has blamed higher fuel costs and lower container volumes for the widening of its first quarter operating loss to KRW201 billion (US$177 million) from $24 million a year earlier, according to media reports.

The diversified carrier's tanker division narrowed its operating loss to $6.2 million from $32 million in the first quarter of 2011. Bulk shipping losses rose to $19 million from $16 million.

In the first quarter, Hyundai's container volume slipped 0.8 per cent to 708,000 TEU. The carrier said intra-Asia and Asia-Europe volumes rose slightly but trans-Pacific volume fell 3.3 per cent to 295,000 TEU.

The company also said rates rose in the first quarter but were offset by fuel costs. However, the shipping line said it expects per-unit fuel costs to decline following delivery by mid-year of five 13,000 TEU ships that will be more fuel-efficient than existing vessels.