SINGAPORE's Neptune Orient Lines, which owns container line APL, narrowed its first quarter year-on-year loss to US$11 million (it lost US$98 million in 2014), drawn on revenues of $2 billion, which declined 13 per cent.

APL, NOL's container shipping business, reported a positive first quarter pre-tax profit of $13 million (it lost $82 million last year), drawn on revenues of $1.6 billion, which declined 15 per cent. 

The revenue fall was due to freight rate erosion, planned capacity cuts from unprofitable trades and adverse impact from the US west coast port congestion, said the company statement accompanying the results.

"The group's container shipping business continued to operate in a challenging environment. Nonetheless, APL has reduced its losses through capacity management, and improved cost and operational efficiencies," said NOL president and CEO Ng Yat Chung. 

"While congestion in the US west coast is easing, the liner industry continues to face persistent overcapacity and uncertain global economic prospects," he said.

NOL attributed the positive core EBIT to cost savings from a $155 million lower fuel bill.

First quarter year-on-year volume fell 15 per cent due to planned capacity cuts in unprofitable trade routes and the impact from the US west coast port congestion. APL's average freight rates were down eight per cent year on year.

"We extracted cost savings from lower bunker cost and through more efficient land and terminal operations as well as vessel and voyage operations," said APL president Kenneth Glenn. 

"These efforts helped mitigate the impact of lower volumes and freight rates that we saw in the first quarter," he said.