NOL to raise capacity 7pc as trade and rates rise again

SINGAPORE's Neptune Orient Lines, owner of southeast Asia's big container line, APL, plans to boost capacity seven per cent this year as rates and trade rebounds and the global economy appears to recover, reports Bloomberg.

APL will charter as many as ten 6,000-TEU ships, said NOL chief executive Ron Widdows in an interview, adding that he also hopes to have 10 laid-up ships back in service in June.

In January, APL experienced its largest monthly traffic increase in six years as American and European retailers restocked shelves. Mr Widdows estimated that transpacific volumes would likely increase five per cent this year industry-wide with even greater growth expected from Asia-Europe trade lanes.

London's Drewry Shipping Consultants said that container lines likely lost about US$20 billion in 2009 because of slumping trade, overcapacity and price wars.

Mr Widdows also told Bloomberg that carriers has been "reasonably successful" in securing higher transpacific rates in annual contracts due to start around May. APL, Maersk and 13 other lines are seeking to raise rates by $800 FEU to US west coast in new contracts.

(Source: www.schednet.com)