GCT ex co. NOL to slash 1,000 jobs!

[CENWEN]

NOL to slash 1,000 jobs

Career of GCT at Neptune Orient Lines, 1969 to 1977

In 1969, Goh was seconded to the Neptune Orient Lines (NOL) as a Planning and Projects Manager. His career advanced quickly and by 1973, he became the Managing Director and led NOL to achieve impressive financial results during his tenure.

Singapore's NOL to cut jobs, profit outlook grim

<cite class="auth">Reuters - 1 hour 29 minutes ago
</cite>SINGAPORE, Nov 19 - Singapore's Neptune Orient Lines <neps.si> will axe 1,000 jobs as part of moves to save $200 million in costs next year to help ride out an expected severe downturn in the shipping sector, the company said on Thursday.

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</noscript>NOL, the world's seventh-largest container line, said it would reduce its global workforce by 1,000, with the largest impact being in North America. There will also be 50 jobs cut in the Singapore office. NOL issued a dismal outlook for next year, saying it did not see a recovery from tough conditions in the near-term and that profit outlook for 2009 was "grim". "This reflects our considered view that what we are seeing goes beyond a normal cyclical downturn," Chief Executive Ron Widdows said in a statement. Most of the staff reductions would be in non-customer facing roles and the cuts were expected to save NOL about $200 million in 2009, the company added. NOL, which is 66 percent held by Singapore state investor Temasek Holdings [TEM.UL], is the latest global firm to announce job cuts in light of a rapidly slowing world economy. Last month, it posted an 82 percent plunge in third-quarter net profit to $35 million, and saw an operating loss in the fourth quarter. Ailing U.S. bank Citigroup <c.n> announced this week it would cut 52,000 jobs globally in a bid to return to health.</c.n></neps.si>

 

[Leegimeremover]

Do you want to vote a person who is grateful to the voter, or be grateful to have someone you never voted or endorsed? My vote is clear.

 

[eeoror88]

Not to worry.

There are a few thousand jobs at our shipyards waiting to be filled.

 

[2lanu]

Wow disintregrating of "globalisation" in the process.

US democrats going to spend and cut FTA.
Taiwan used vouchers to boost spending internally.
China 400B to also create internal market.
Now little dot also cut jobs in foreign market.

 

[CENWEN]

Shipping industry hit by yard cancellations, fewer transactions



Shipping industry hit by yard cancellations, fewer transactions

<cite class="auth">Channel NewsAsia - 1 hour 22 minutes ago
</cite>SINGAPORE: The shipping industry is in for some choppy times ahead. Already, freight rates and transaction numbers are falling in line with the global downturn.

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</noscript>Neptune Orient Lines, the world’s seventh largest container line, is taking new measures to stay afloat, including cutting 1,000 jobs worldwide.
After the boom in the last five years, many shipping lines are now having to deal with excess capacity.

Ken Tai, technical strategist, KE Live Research, said: "Just look at the anchorage at the East Coast Park and you’ll notice a lot of vessels and that actually suggests the industry is actually not doing that well. "These shippers depend a lot on their freight rate. These freight rates are actually declining and with the volume declines, trade between countries start to decline. It’s going to be a double whammy situation for these shippers."
Industry watchers said the value of ships has dropped by as much as 70 percent and that is fuelling even more pessimism going forward. Joachim Skorge, managing director, Investment Banking, DnB NOR Bank ASA, said: "I also think we will see yard cancellations because currently there is a significant oversupply of dry bulk and container vessels. "I think a lot of people are worried (about) what’s going to happen if all those vessels are being delivered and demand is not picking up. "I also think we’ll see some shipping companies forced to sell certain assets in order to improve their balance sheets because many players have been buying vessels at high prices and prices have been coming down sharply. That means they need to do certain things to improve their balance sheets."

Some observers predict the sector may only start to see a recovery at the end of next year. Until then, they said shipping companies with cash on hand could use this time to purchase assets cheaply and position themselves for the upswing. During this time of the year, the container industry is usually very active for the festive holiday season. However, observers said one indication that the industry has been hit by the global downturn is that the container terminal is not as full, and containers are not stacked as high, as before. — CNA/vm

 

[2lanu]

Re: Shipping industry hit by yard cancellations, fewer transactions

I help Ah Goh to say something, "If my ex-company has no retrench, I will be worry."
and "I can feel it with my bones"...heehee