RCL reports 18% rise in first-half profit as Middle East tensions

Source: TradeWinds

Intra-Asian container shipping company Regional Container Lines (RCL) reported higher freight rates and profits due to the Red Sea crisis.

Thai-listed RCL reported a net profit of THB1.76 billion for the first half of 2024, up 18% from the first half of 2024.

There was a strong growth in profits in the second quarter of this year, with net profit reaching THB1.15 billion, up 87% from the first quarter of this year, which the company said was mainly due to a 12% increase in freight rates compared to a 1.9% increase in costs. Volume in the quarter fell 5%.

In the first half of 2024, RCL reported an 8.1% increase in freight profits and a 15% increase in total volumes compared to the first half of 2023.

“This was primarily due to the rise in freight rates caused by the ongoing tensions in the Middle East. Consequently, there was a shortage of containers due to the extended distance and time required for the transportation,” RCL said.

RCL operates mainly in Asia and the Indian subcontinent, but also has some services connecting to ports in the Middle East, including two Red Sea transit services, according to the route network published on its website.

In August, RCL will take delivery of a 12,000-TEU containership, the largest ship it will operate in its own fleet and which is expected to be deployed on long-haul services. The company also has two 7,000-TEU vessels due for delivery in September, one of which is already on long-term charter, while the other will be used for RCL’s own operations. 

RCL said it has expanded its service network and invested in more reefer containers.

Source: Phaata.com (via Seatrade-Maritime)

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