Regional Container Lines (RCL) reported a sharp drop in profits on the back of lower volumes and freight rates.
Net profit was THB 576m ($16.4m) in the second quarter, which is massively down on the THB 7.3bn ($207m) logged in the same period last year.
Revenues more than halved to THB 6.3bn, down from THB 13.4m in the same period last year.
The fall in volumes came as the market returned to normal, the company said.
Freight rates dropped to $353 per teu in the second quarter, down from $394 per teu in the first quarter of the year.
The company was also impacted by lower time charter rates, especially for smaller vessels.
Other adverse factors included slower economic growth in China and higher bunker prices.
Higher interest rates had reduced consumer demand and negatively impacted on contracted volume of shipments, it said.
“The container shipping industry continued to encounter various challenges, not only a slow-down in the global economy, particularly in the United States and Europe,” the company said.
Vessel sales
RCL is also selling two older vessels as it continues to upgrade its fleet.
The unnamed vessels are over 25 years old and will be delivered to buyers in the third quarter of the year, the company said.
The Thai carrier added it was “actively seeking the opportune timing and favourable pricing to further replace its ageing vessels”.
The company recently took delivery of the 1,930-teu Nattha Bhum (built 2023). The Bangkokmax vessel was purchased from Kanway Shipping of Taiwan, which had signed two orders and two options in late 2020.
The vessel has joined RCL’s fleet of around 40 container ships.
