NOL predicts loss for 2009

Singapore - Neptune Orient Lines (NOL) has forecast a loss for the year 2009, due to a weak demand for transportation of Asian goods in light of the current economic condition.

"Container shipping and related businesses are in the midst of a pronounced downturn which is expected to extend through 2009. Reduced consumer demand worldwide, coupled with excess supply of new vessel tonnage is creating a very difficult business environment," NOL said in a statement.

According to Bloomberg, an annual net loss would be the first in seven years.

Previously, the company has announced that year-on-year net profit in 2008 dropped 84%.

In the fourth quarter alone, the company suffered a net loss of US$149 million, including US$72 million of "restructuring charges," for the elimination some jobs, Cedric Foo, chief financial officer of NOL told reporters.

The job cuts, totalling 1000 staff, were estimated to lower the company's Q408 earnings by approximately US$33 million.

NOL said new vessel commitments; both owned and chartered, total 28 with deliveries due to begin this year.

"Some deliveries have been pushed back to 2012. The company may also return some ships to owners as charters expire, depending on demand," Eng Aik Meng, president of the liner division, said at a press conference.

As of December, NOL's idle ships count 12.