APL: Reducing Bunker Consumption "Absolutely Critical"

by Ship & Bunker News Team
Wednesday February 27, 2013

APL, the liner shipping business of Singapore-based Neptune Orient Lines (NOL), says reducing bunker costs are critical not only for the firm, but for ship operators in general.

"Bunkers are a very significant cost item for us, as they are for any shipping companies. Reducing fuel consumption remains absolutely critical to our cost savings programme," APL President Kenneth Glenn told Seatrade Global Online.

NOL said its cost savings programme netted the firm $504 million in savings last year, out of which some $227 million (45 percent) was from the reduction on its bunker bills.

Commenting on the outlook for the shipping market in 2013, Glenn said APL are expecting year-on-year container shipping volumes to grow by 5 percent this year, supported mainly by active trades in intra-Asia and the growing export markets of Latin America.

"We believe growth in those three areas will remain quite good compared to global averages," he said.

For 2012, NOL posted a full year net loss of $419 million, while APL's Core EBIT loss of $279 million represented a $167 million improvement on 2011.

Ship & Bunker News Team
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