Regional Container Lines hit by 33.6% increase in bunker costs in 2018

Higher fuel costs hit Regional Container Lines (RCL) last year dragging the company into the red.

RCL Group reported a loss of THB356m for the year 2018 against a profit of THB533.2m in 2017.The loss came despite a 5% rise in revenues year-on-year to THB12.262bn last year.

The company said a dramatic 33.6% increase in bunker costs had led to higher freight operation costs, and it was also hit by a THB50m impairment on vessel values.

“The unfavourable loss was substantially due to rise in cost of bunker, despite better performance in revenue and liftings, and containment of other costs,” RCL said.

In 2018 RCL handled 869,325 teu for Shipper Owned Container (SOC) and 1.24m teu of Carrier Owned Container (COC), representing a year-on-year increase of 9.7% and 11.9%, respectively.

Commenting on the outlook the company said: “Amid the on-going trade war and uncertainties in the geo-political front, RCL will continue to improve its efficiency by further reducing its costs, using new technology in operation and to increase other income in the areas where possible.”

Posted 25 February 2019
Marcus Hand

Editor, Seatrade Maritime News

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