Shipping line APL: Loss of USD 231 million in the year 2013

APL executive mangement expects challenging conditions due to continued over-supply of capacity in 2014; line freight rates will remain under pressure

APL, NOL’s container shipping business, reported a 9% dip in revenue to USD 7.3 billion, which the company attributed to capacity management and a sharp fall in freight rates. In spite of the lower revenue, APL made a 2013 Core EBIT improvement of 8% over 2012, registering a loss of USD 231 million. Transport volume was 2.946 million FEU or up 2% over 2012.

“Our revenue was hard hit by a drastic drop in freight rates. We had also experienced one of the weakest third and fourth quarters in recent years,” said APL President Kenneth Glenn. “APL’s improved cost structure will sustain our long-term growth, evidenced by our improving operating results. We are also sharpening our competitive edge through the adoption of a function-led management approach to speed up decision-making and improve market responsiveness.”

In 2013, APL’s headhaul utilisation stayed above 90%. Its average revenue per forty-foot-equivalent unit (FEU) dropped 8%, while operational efficiencies and lower bunker prices helped reduce cost of sales per FEU by 8%. By the end of 2013, APL had taken delivery of 24 out of 34 new vessels. The shipping line expects to reap even greater operational efficiencies with the arrival of the remaining 10 fuel-efficient vessels in 2014, which will replace 20 smaller vessels on expiring charters.

“The delivery of new tonnage in 2013 added to the over-capacity in the container shipping industry. Overall freight rates declined through the year, with the fourth quarter recording one of the lowest levels the industry has seen in the last three years,” said NOL Group CEO Ng Yat Chung.

Regarding to APL’s outlook, Global economic growth prospects are uncertain. Conditions in the liner industry are expected to remain challenging due to continued over-supply of capacity. Liner freight rates will remain under pressure. The Group will continue its focus on managing costs and operational efficiencies with the aim to improve its financial performance in 2014.

www.apl.com

Quelle: LogEastics
Portal: www.logistik-express.com