Neptune Orient shipping division back in black
Higher freight rates and cost reductions have driven Singapore-based Neptune Orient Lines' container shipping division to make a profit for the first time since 2010.
In the three months to June, the container division, which trades as APL Ltd, posted earnings of $7million (£4.47million), a big turnaround from the previous quarter, when it lost $53million (£33.9million).
Enhanced co-operation between shipping lines helped APL raise its average freight rates by three per cent between April and June, as the companies eased back on their competition for business, Businessweek.com reported.
APL President Kenneth Glenn told reporters and analysts in Singapore that rates were still steady and the company may aim to increase them further if the opportunity arises.
NOL brought six new 10,000-container ships into traffic in the first half of the year, with four more due before the end of December, taking its total to 141 with a capacity of 630,000 boxes at the end of June.
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