RCL halves loss by cost-cutting, but fears low rates ahead

THAILAND's Regional Container Lines (RCL), the intra-Asia feeder, cut losses 52 per cent in the first quarter year on year, posting a loss of THB342 million (US$10.5 million) against the THB711 million lost in the same period last year.

While the company credited 12 per cent savings from aggressive cost-cutting, rising rates, experienced elsewhere in the industry, eluded the feeder-short sea world because of competition for market share.

Nonetheless, RCL increased volume seven per cent to 600,917 TEU in the first three months, reported London's Containerisation International. The company also expressed concern that 22,000 TEU capacity shoe horned into the Asia-Europe trade was bound to have a depressing effect on freight rates.

Source: www.schednet.com