OVERCAPACITY and low freight rates continued to plague Neptune Orient Lines (NOL), causing it to sink into a first-quarter net loss of US$98 million, from a US$76 million profit a year earlier. Last year's results included a US$200 million gain from the sale of NOL's headquarters building in Singapore.

Revenue for the three months ended March 31, 2014, fell 4 per cent to US$2.28 billion from US$2.37 billion. The company said this was due to a decrease in liner revenue from lower freight rates.

"Operating conditions in the first quarter had been difficult, with severe weather disruptions in Europe and North America. This compounded the challenges posed by continued excess capacity in the container shipping business," said NOL Group president and CEO Ng Yat Chung.