12 May 2016
In 1Q2016, RCL's Carrier Owned Container (COC) liftings increased by 4% year-on-year to 237,599 TEUs, however its Shipper Owned Container (SOC) declined by 11% year-on-year to 181,765 TEUs, resulted in the total liftings' reduction of 4% year-on-year to 419,364 TEUs.
Due to the huge tonnage imbalance in demand and supply, global freight rates tumbled to historically low levels. Coupled with the slow down in the Chinese economy during Q1, RCL's revenue per TEU dropped from US$309 to US$263 year-on-year. Hence the total turnover for 1Q2016 was THB 2,663 million, a 7% decrease year-on-year.
With stringent expenses confinement and huge saving from the bunker cost, the total variable and fixed cost per TEU, excluding depreciation, were favourably reduced from US$252 to US$230. Despite this achievement, it was not sufficient to cover the worst decline in the freight rate. Total cost of freight and operation in 1Q2016 increased by 5% at THB 2,605 million as compared to the same quarter the year before.
As a result, RCL suffered a net loss of THB 243 million for 1Q2016, versus a net gain of THB 173 million in 1Q2015. This is an unsatisfactory result but it follows the industry trend in 1Q2016. The exchange loss for the period was THB 32 million, versus a gain of THB 17 million in 1Q2015.
On a positive note, it was reported in the industry that the freight rate seemed to reach the bottom.
Founded in 1979, RCL is a Thai based container shipping line. Listed on the Thai Stock Exchange since 1988, its core business is in the carriage of Shipper owned containers (SOC) and its own Carrier container containers (COC) in a service network that is fully Asia centric. RCL currently owns and operates a fleet of 46 vessels with sizes ranging between 500 TEUs to 3316 TEUs. It also has a fleet of 71,723 TEUs to support its own COC carriage as well. RCL operates a network of 64 offices made up of both owned and agency partner offices to support its operations. Today, RCL is recognised as amongst the leading SOC and Intra Asian operator by both peers and customers alike.
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