Regional Container Lines overcame lower cargo volumes amid the Covid-19 pandemic, achieving a net profit of THB12.7 million (US$389,451) for the first quarter of 2020. The result reversed a net loss of THB28.4 million (US$899,019) in Q1 2019.
The Thai feeder operator said that although container volumes were down by 12% from Q1 2019, to 489,000TEU, RCL managed to increase revenue slightly from a year-ago, to THB4.27 billion (US$130.85 million).
In response to lower volumes, RCL reduced the number of sailings to adjust its capacity and to save on bunker costs.
RCL said, “With the actions taken, we were able to put a brake on bunker costs which would have inevitably increased with the implementation of the International Maritime Organisation’s 2020 regulations.”
The company continued, “We were able to secure shipments at a noticeably improved freight per TEU, combined with a gain in exchange rates, which helped mitigate the impact from lower volumes as demand for goods and services plunged as a result of extended Chinese New Year holidays and lockdowns of cities as the Chinese government tried to contain the Covid-19 outbreak. This factor added a significant disruption to the market which had already been damaged by the prolonged trade war between the US and China.”
While cargo volumes were down, expenses went down too, to THB4.18 billion (US$128.3 million), with freight and operating costs declining by 1% to THB3.94 billion (US$120.76 million).
RCL commenced operations in 1979, operating its first feeder container ship between Bangkok and Singapore. Presently, RCL owns and operates 29 container vessels covering services to Asia, India, India subcontinent and the Middle East. The company is ranked 24th Alphaliner’s Top 100 list of liner operators, with 52,807TEU of capacity.
Martina Li
Asia Correspondent
