Korean boxship line HMM has reduced its first quarter loss as revenue rose.
The operating deficit was KRW 105.7bn ($88.8m), down from KRW 170.1m a year ago.
It blamed high bunker costs, the US-China trade conflict and a delay in the rate of regional recovery for the red ink.
Revenue was up 18% at KRW 1.31 trillion, led by higher transport volumes and load factor.
It carried 11% more containers - 1.08m teu - despite the traditional slack season.
Average bunker costs rose 13.4% to $423 per tonne.
"Liners’ burden of high fuel costs is expected to increase due to the US sanctions against Iran, OPEC agreeing to cut oil production, and increased demand of low sulfur fuel oil in preparation for IMO 2020," it said.
"HMM put its efforts into collecting the bunker surcharge to recover the higher fuel prices."
It added that freight rates headed down as a result of volumes falling after the Chinese New year holiday, as well as intensified competition in the Asia-North America trade lane.
An HMM official said: “HMM will maximise its efforts to strengthen profitability by successfully securing service contract with valued customers, rationalise its service network, attract high-value cargoes, and create competitive new service routes.”
The official added: “Given rising demand during peak season, both freight rate and container volumes are highly likely to increase in the second and third quarters.”
But it expects continued uncertainty over cargo volumes due to concerns over a global economic slowdown, Brexit, and the US-China trade conflict.
