APL's box volumes slide 21pc in May, FEU rates down 25pc

SINGOREAN shipping company Neptune Orient Lines (NOL) has reported that its container shipping line APL's container volume and average revenue per container declined in the four-week period from May 2 to May 29.

During the four weeks under review, APL's box shipping volume decreased by 21 per cent to 159,100 FEU, down from 201,700 FEU last year. Average revenue per 40-foot container fell by 25 per cent compared to the same period a year earlier, to US$2,326 down from $3,023.

NOL attributed the fall in volume to lower demand on all major trade lanes. Lower average revenue per FEU was due to weaker core freight rates and lower recovery of its bunker fuel costs.

In the year through May 29, APL's container shipping volume dropped 25 per cent to 798,400 FEU, down from 1,067,600 FEU a year earlier.

During the first five months of the year, average revenue per FEU decreased by 18 per cent to $2,415 from $2,952 for the same period in 2008.

Commenting on the results, Paris based AXS Alphaliner said: "Some positive signs are emerging from the latest results from APL, as volumes have recovered slightly from the lows seen in the first quarter. Average rates have also stopped declining on a month-to-month basis, with May's average rates largely unchanged from April's rate of $1,161 per TEU. Nonetheless, this came amidst a rising bunker fuel price environment with average bunker costs in May rising by 18.5 per cent compared to April."

(Source: News and Data Online)