APL boxes up 3.1pc to 441,600 TEU monthly, but rates off 4pc

SINGAPORE's APL announced it has handled 441,600 TEU in the four weeks ending November 12, up 3.1 per cent 13,600 TEU from 428,000 TEU the month before.

But rates were down four per cent to US$1,399 per TEU from $1,458 four weeks ago, indicating a downward trend for rates has been formed over the past three months. Rates have dropped 12 per cent from their high point since August.

The carrier said the decline in the past three months was affected by the decline of rates in Asia-Europe and Asia-Red Sea lanes.

APL's China-southeast Asia lanes have seen reductions of rates due to overcapacity. "This furthermore coincided with the start of APL's latest loop, the China Indonesia Straits Service (CIS). Launched in November, this new capacity will adversely affect APL's average rates in its next reporting period," said the Paris-based Alphaliner agency.

Though posting a better-than-expected operating profit of US$301 million in the third quarter, the earnings of the fourth quarter are estimated to be lower due to contracting freight rates and increasing bunker fuel prices, which are forecast to be 7.5 per cent higher in the last quarter than in previous one, said the report.
(Source:www.schednet.com)