NOL Group posted a third-quarter loss of $91 million, compared with a profit of $282 million a year earlier, and the parent company of container line APL said it expects to report a loss for the full year.
“The liner shipping industry is faced with slowing trade demand, excess capacity and fuel costs that are significantly higher than a year ago,” said NOL’s chief executive, Ng Yat Chung. “Our urgent priority is to drive down costs and increase efficiency.”
APL reported negative core earnings before interest and taxes of $88 million, compared with core EBIT of $301 million in the third quarter of 2010. Revenue fell 12 percent year-over-year to $1.9 billion.
The liner company’s revenue rose 7 percent to 699,000 40-foot equivalent units but average revenue per FEU tumbled 19 percent to $2.539. Fuel prices rose 45 percent from a year earlier.
APL Logistics reported core EBIT of $16 million, down 11 percent, while revenue rose 10 percent to $33 million. Through the first nine months of the year, APL Logistics had core EBIT of $49 million, up 9 percent from a year earlier, on a 15 percent rise in revenue to $1 billion.
Through the first nine months of this year, the liner unit had a core EBIT loss of $149 million, compared with core EBIT of $314 million a year earlier. Average revenue per FEU fell 9 percent to $$2,560. Volume rose 8 percent to 2.2 million TEUs.