APL’s CEO reports cargo rollovers, strong volumes
Ron Widdows, chief executive of APL, said his company’s ships in the transpacific, Asia/Europe and intra-Asian trades are running full, with cargo being “rolled over” to next sailings as volumes grow at a robust pace.
“We’re full in Asia/Europe and rolling cargo; we’re full in the transpacific and rolling cargo; and we’ve been full in intra-Asia for five months,” Widdows told American Shipper.
APL reported that industry-wide cargo volumes in the eastbound transpacific trade rose 9.8 percent in January over the high volumes experienced in January 2003 shortly after the ending of the U.S. West Coast port lockout. From Asia to Europe, conference statistics show a 12-percent jump in volumes for January from Asia, Widdows said.
He also reported a “stronger recovery” in Asia’s export trades after the usual slack of the Chinese New Year, when factories are closed in Asia, and increases in the backhaul trades from the United States and Europe to China.
APL’s bullish comments on volume growth follow other forecasts that the transpacific trade could slow down this year. In December, eastbound Pacific volumes also decreased 6 percent, largely due to the effect of the previous December’s West Coast labor disruptions. In 2003 overall, volumes rose about 8 percent, with growth slowing in the second half.
Widdows cautioned it is too early to say whether full-vessel conditions would last until the end of this year. Yet, APL predicts overall supply and demand this year will continue to favor carriers. It expects container trade growth to exceed that of supply in 2004. APL’s ship utilization in its headhaul trades averaged 94 percent in the fourth quarter of 2003.
On Tuesday, APL Liner reported an operating profit (earnings before interest and tax) of $406 million for 2003, as compared to a loss of $72 million in the previous year. Revenue at the container-shipping unit soared 21 percent last year to $4.2 billion.
Neptune Orient Lines said it expects to raise its profit results again this year, barring exceptional circumstances.