Global container shipping and logistics group Neptune Orient Lines (NOL) has reported a net loss of US$67m for the first half of 2011 compared to a US$1m net profit the same period a year ago.
The group said it lost US$57m in the second quarter of 2011.
NOL said first half 2011 results were affected by higher operating costs, especially for fuel, and declining freight rates.
Commenting on the group's results, NOL CEO Ronald Widdows said: 'Conditions are challenging throughout the shipping industry. In this environment we are working aggressively to bring down costs while keeping our assets well utilised.'
NOL's container shipping business APL, however, reported a 7 per cent revenue rise to US$4bn in the first half of 2011 compared to the prior year period. Volume increased 8 per cent. The firm attributed the rise to lower freight rates in the Asia-Europe trade.
And APL Logistics – NOL's supply chain management business – increased revenue by 18 per cent in the first half of 2011 to US$682m. The increase was attributed primarily to gains in contract logistics, which includes rail and land transport business, as well as auto logistics and international services, particularly in China.
Nevertheless, Singapore-based NOL Group said it will post a full year loss unless global economic conditions improve.
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