High fuel costs have hit the revenue of Neptune Orient Lines Ltd, the largest container line in South East Asia, with its first profit decline in five quarters, according to Bloomberg Press.
The Singaporean line’s income fell 19 per cent to US$75.8m, although sales went up 24 per cent to US$2.24bn.
“The second quarter was impacted by a large run up in bunker costs and a deterioration in core rate levels in the Asia- Europe route,” CEO Ron Widdows said in a statement. He said fuel costs in the second quarter rose by 62 per cent.
NOL is currently in the bidding for German shipping line Hapag-Lloyd. If NOL wins, it will become the third largest container line in the world, up from its current fifth place position.
Container shipping’s future is in flux at the moment, as fuel costs climb and economies slow worldwide. NOL was operating at 90 per cent capacity the second quarter of this year, while at the same time last year it was at 98 per cent.
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