NOL Reduces Net Loss as Efficiency Improves

by Ship & Bunker News Team
Thursday February 20, 2014

Neptune Orient Lines (NOL) reports it narrowed its net loss in 2013 to $76 million from $412 million in 2012, thanks partly to improvements in efficiency and cost management, which produced $470 million in savings.

The company's revenues declined 7 percent year-over year to $8.8 billion.

APL, NOL's container division, reduced its cost of sales per forty-foot equivalent unit (FEU) by 8 percent thanks to operational efficiencies and lower bunker prices, offsetting an 8 percent drop in revenue per FEU.

"APL expects to reap even greater operational efficiencies with the arrival of the remaining 10 fuel-efficient vessels in 2014, which will replace 20 smaller vessels on expiring charters," the company said.

APL President Kenneth Glenn said the division faced rough market conditions.

"Our revenue was hard hit by a drastic drop in freight rates," he said.

"We had also experienced one of the weakest third and fourth quarters in recent years."

APL announced last month that it is reorganising its structure to increase its competitiveness, building on gains made through fuel efficiency improvements.

Ship & Bunker News Team
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