NOL posts quarterly net loss of US$54 million, APL lowers fixed costsSINGAPORE's Neptune Orient Lines (NOL), parent of container giant APL, posted a second quarter year-on-year net loss of US$54 million.
"We have more to do, but both business units have continued to make gains in costs and efficiencies," said NOL president and CEO Ng Yat Chung.
APL narrowed its $29 million operating loss by 29 per cent over the same period last year posting an EBIT of US$61 million this quarter.
Second quarter cost of sales per FEU went up three per cent year on year because of a US trucking shortage and southern California congestion that impacted empty box repositioning costs.
APL second quarter revenue was US$1.6 billion, down two per cent a slight, resulting from a six per cent decline in volume due to strict capacity management.
"The improvement in our second quarter operating results is significant given that we saw reduced revenue and higher operating costs. We achieved this through lowering fixed costs," said APL president Kenneth Glenn.
We have now taken delivery of all our newbuildings and are returning more of our less efficient and expensive chartered tonnage," he said.
APL headhaul utilisation was at 95 per cent in the second quarter, which experienced steady volume with freight rates rising 13 per cent year on year in the Asia-Europe trade.
Compared to the same period last year, volume was stable in the transpacific with freight rates falling three per cent. Meanwhile, APL's intra-Asia trade shed nine per cent in volume against a two per cent dip in freight rates. APL Logistics increased operating profit 40 per cent year on year to US$14 million in the second quarter, drawn on revenues of $379 million, up seven per cent.
"We experienced business growth across all regions," said APL Logistics president Beat Simon. "We will make further investments in sales and operational capabilities to enhance service."
"We have more to do, but both business units have continued to make gains in costs and efficiencies," said NOL president and CEO Ng Yat Chung.
APL narrowed its $29 million operating loss by 29 per cent over the same period last year posting an EBIT of US$61 million this quarter.
Second quarter cost of sales per FEU went up three per cent year on year because of a US trucking shortage and southern California congestion that impacted empty box repositioning costs.
APL second quarter revenue was US$1.6 billion, down two per cent a slight, resulting from a six per cent decline in volume due to strict capacity management.
"The improvement in our second quarter operating results is significant given that we saw reduced revenue and higher operating costs. We achieved this through lowering fixed costs," said APL president Kenneth Glenn.
We have now taken delivery of all our newbuildings and are returning more of our less efficient and expensive chartered tonnage," he said.
APL headhaul utilisation was at 95 per cent in the second quarter, which experienced steady volume with freight rates rising 13 per cent year on year in the Asia-Europe trade.
Compared to the same period last year, volume was stable in the transpacific with freight rates falling three per cent. Meanwhile, APL's intra-Asia trade shed nine per cent in volume against a two per cent dip in freight rates. APL Logistics increased operating profit 40 per cent year on year to US$14 million in the second quarter, drawn on revenues of $379 million, up seven per cent.
"We experienced business growth across all regions," said APL Logistics president Beat Simon. "We will make further investments in sales and operational capabilities to enhance service."