NOL volume plummets

Singapore - Neptune Orient Lines (NOL) reported a 35% decline in cargo volume for the first six weeks of this year, hurt by continued slumping market demand.

According to media sources, NOL said from the period 27 December 2008 to 6 February 2009, its cargo volume slipped to 188,400 FEU (40-foot equivalent units), down from 289,400 FEU in the same period a year earlier.

"The decrease in volume is due to the continued deterioration in demand on all major trade lanes and an earlier Lunar New Year compared to prior year," NOL said.

In the fourth quarter 2008, the Singapore-based company posted an 84% decline in revenue, with a net loss of US$149 million compared to a net profit of US$196 million in the previous year.

In a statement, Ron Widdows, president and CEO of NOL said the results confirm the impact of a severe market downturn in the latter part of 2008, caused by reduced consumer confidence and significant restructuring costs.

NOL also forecast a loss for the year 2009.

"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.