RCL profits from increased freight rates, cost control in Q1

Thai-listed RCL reported a Q1 2024 net profit of THB613 million ($16.77 million) rebounding from a loss of THB517 million in the fourth quarter of 2023. However, Q1 2024 profit was down 33% year-on-year with RCL compared a net profit of THB913 million in Q1 2023.

The company noted that container shipping had seen a positive impact from the pandemic through to Q2 2023.

Looking at Q1 2024 the line said freight rates were up 2% in Q1 2024 at $314 per teu compared to $307 per teu in Q4 2023.

RCL’s freight income increased by THB270 million or 4% in Q1, with the total lifting reaching 604,000 teu, a 2.3% increase.

“Concurrently, the cost of operation declined by THB42 million compared to the previous quarter, even though the bunker prices remained elevated. This reflects the stringent cost control measures of the company,” RCL said.

In terms of fleet development the company recently took a three-year charter on a 7,000 teu vessel, and ordered two more 4,400 teu capacity newbuilds to an existing order for four vessels.