SINGAPORE (Yosefardi) – Samudera Shipping Line Ltd booked revenue of USD97.4 million for the third quarter ended 30 September 2013 (3Q13), decreased 17.7% from USD118.4 million in the previous corresponding period (3Q12), on lower contribution from the regional and Indonesia domestic container shipping businesses. However, the performance of regional container shipping has improved.
The regional container shipping business registered revenue of USD70.7 million, an 18.8% decline from USD87.0 million in 3Q12, as increased competition in regional waters and a vessel oversupply situation continued to impact freight rates and volume handled by this business.
Container volume handled fell to 289,100 TEUs, compared to 313,000 TEUs in 3Q12, as part of the Group’s effort to reduce its exposure to shipping cargo with negative contribution.
Revenue from the Indonesia domestic container shipping business was USD10.8 million, a 30.6% fall from USD15.5 million in 3Q12. Increased capacity as a result of new entrants into this market segment since the second quarter of the financial year affected freight rates and volume handled. Volume handled declined 9.1% to 37,000 TEUs, from 40,700 TEUs last year.
Overall, net loss after tax was USD0.3 million in 3Q13, compared to a profit after tax of USD1.4 million in 3Q12.
The Group has rationalized both capacity and services in an effort to position itself more competitively. It is also continuously reviewing its vessel hire contracts so as to renew these contracts at lower rates, which should help to reduce its operating costs.
The conditions continue to be challenging in the Indonesian container shipping business due to excess capacity. The Group plans to further rationalize charter capacity upon the expiry of charter hire contracts where commercially feasible, so as to manage its operating costs more effectively.