Regional Container Lines (RCL)’s profits rose sevenfold rise in the third quarter after a big jump in freight rates.
The Thai company logged a net profit of THB 4.1bn ($119m) in the three months to the end of September, up from THB 585m in the corresponding period last year.
It attributed the stronger result to higher freight rates that have enabled it to shift focus to new and profitable longer routes.
RCL is taking delivery of modern, larger boxship newbuildings as replacement for smaller, older ones.
It said it is expanding its fleet to meet its “strategic goals to focus on high potential markets with continuous growth prospects”.
These include expanded services to niche markets in the Philippines, Iraqi ports and routes on the Indian subcontinent.
Last month, the company began a second international loop linking the niche Philippines port of Iloilo and southern Vietnam.
It also teamed up with Bengal Tiger Line to introduce a joint service linking western India and the United Arab Emirates, with regular calls at Umm Qasr in Iraq.
RCL expanded connections between the subcontinent and the Middle East with a dedicated service between the UAE, Pakistan and Oman.
Network expansion
“This network expansion is another key factor reinforcing the Company’s long-term business strength,” it said.
“Consequently, these measures have contributed to the solid performance in the third quarter of 2024.”
Revenues increased to THB 11.1bn, up from THB 6.8bn a year earlier, due to a rise in freight rates from $352 per teu in the second quarter to $515 per teu in the third quarter.
Volumes were also 4% higher.
RCL has been renewing its fleet with a chunky newbuilding programme.
It took delivery in September of the 11,714-teu Ussama Bhum (built 2024), the third in a series of four vessels purchased from interests linked to Shoei Kisen of Japan.
The vessel, the largest in its fleet, has been phased into RCL’s China-Middle East service.
The fourth in the series, the 11,714-teu Varanya Bhum, is slated for delivery in January.
RCL also took delivery of the 7,100-teu Itthi Bhum and Hemma Bhum (both built 2024), the second and third of eight sisters built by Shanghai Waigaoqiao Shipyard.
RCL owns or operates around 45 container ships. Including options, it has eight 4,382-teu vessels and four 7,092-teu vessels on order.
