NOL warned of a persistent capacity oversupply
Neptune Orient Lines (NOL) reports a net loss of $54 million in the second quarter of the year, more than the $35 million loss in the same period last year, as revenues from the liner business declined.
The company's revenues declined slightly, to $2.05 billion from $2.06 billion in Q2 2013 while finance expenses rose by $33 million due to gains from financial hedging instruments last year.
Total volumes transported fell 6 percent to 662,000 forty-foot equivalent units (FEU) with the decline driven mostly by changes in the Intra-Asia trades.
"Global economic prospects are uncertain," the company said.
Global economic prospects are uncertain
"Persistent oversupply of shipping capacity is expected to limit the pace of liner freight rate recovery.
"The Group aims to improve its financial performance in 2014, through its continued focus on cost management and operational efficiency."
NOL reported a $98 million loss in the first quarter of the year, when it said efficiency improvements did not make up for a decline in freight rates.