Rising deep sea volumes push NOL back into profit
Rising volumes in the liner shipping market helped Neptune Orient Lines produce a core EBIT of US$40 million for the first half of 2010, compared to a US$353 million loss a year ago.
Its liner business that covers shipping and terminals reported a 39 per cent increase in volumes to 1.35 million forty-foot equivalent units. Revenue was up 46 per cent, reflecting improved margins. Core EBIT for the first half was US$13 million, up from a loss of US$372 million last year.
“Vessels were effectively full during much of the first half of 2010 even though we reintroduced idled vessels to our network and added incremental capacity,” said APL president Eng Aik Meng.
Its supply chain business, APL Logistics showed sales increasing by 33 per cent for the first half of 2010. This was attributed to growth in the auto logistics sector, increased volumes and higher rates.
“We are particularly encouraged that average weekly revenue in the second quarter of 2010 was the highest it has been since late 2008,” said president of APL Logistics, Jim McAdam.