NOL Cargo Up 32%, Signals Recovery In Shipping Sector

Neptune Orient Lines (NOL) said its containers have increased 32% yoy in the four weeks from 6 March to April 2, mainly due to higher volumes carried from the Transpacific and Intra-Asia trade lanes. Meanwhile, the average revenue from each container rose 12% yoy to US$2,622, largely due to improved core freight rates and higher bunker recovery, particularly on the Asia-Europe trade lane, signaling a recovery in the shipping sector.


Rickmers To Conserve Cash By Reducing 73% Of DPU

Rickmers cut its DPU by 73% yoy to US$0.0057 for the first quarter ended March 31. Nonetheless, the shipping trust has recently signed two important term sheets that are expected to resolve its funding issues. Last week, Rickmers announced that a term sheet has been signed with its lending banks for a five-year extension of its US$130m top-up loan facility - which matures April 30 - and a waiver of its value-to-loan covenants for up to three years. Another term sheet has also been signed with Polaris Shipmanagement Company, to discharge the trust from its obligations to purchase three 4,250 TEU and four 13,100 TEU container ships worth US$918.7m. As such, it will pay Polaris compensation of US$64m, of which US$15m will be paid in cash and the balance converted into an interest bearing convertible loan to the trust, maturing in 2014.