Singapore-based shipping and logistics group Nepture Orient Lines (NOL) has posted a loss of $651 million in 2009 compared to a profit of $213 million in 2008.

Transport Intelligence (TI) said volumes in NOL's APL shipping operations fell, but not as much as might be expected, with the number of containers handled dropping just 7%.

"This low figure is due in part to a recovery in activity in the latter part of 2009, with Q4 seeing a year-on-year jump in volumes of 28%."

"What damaged profitability so badly, however, was the weakening container rates which resulted in rates being 28% lower in 4Q 2009 than the same period in 2008. As a result the business saw 'Core EBIT' fall into a loss of $731m for 2009 whilst revenue fell by 31% to US$5.5bn," said TI.

NOL's port terminals business performed less badly than container shipping. Revenue fell by 13% compared to 2008 to $503 M Core EBIT halved to $32 million. Activity in the 4th quarter recovered with revenue 14% higher that of the same period in 2008.

APL Logistics however, suffered more than might have been expected with revenue down 26% for the full year at US$976m although 'Core EBIT' was down only 16% at $54 M. In part these figures are reflection of the varying performances of the contract logistics and freight forwarding activities of APL Logistics.

In the published results, Mr. Ron Widdows, Group President and CEO of commented that, "the 2009 results were disappointing and show the impact of sharp falls in demand and freight rates, especially in the first half of the year."

"This is evident from the dramatic reduction in annual revenue. Through the later part of 2009, improved volumes and active capacity management led to higher utilization rates, but earnings remained depressed due to low freight rates which continued below levels which enable full cost recovery."