Samudera Shipping Line reversed into the red in the financial year 2013, dragged down by poor performance of its container shipping arm, coupled higher interest expense and tax.

Samudera posted a net loss of $2.19m in 2013 as against a profit of $4.15m in 2012.

Revenue fell 16.4% year-on-year to $391.18m due to lower contributions from the container shipping business.

Samudera revealed that it handled lower container volume at 1.1m teu compared to 1.2m teu in 2012 due mainly to the “consolidation of some of the services in response to changes in the competitive landscape.”

It explained that with the expiry of long term vessel charter contracts, the group is taking the opportunity to review the fleet composition and renew some contracts at lower rates, which would help to lower the group operating costs.

“The domestic container shipping business in Indonesia continues to face challenges due to excess capacity. The group will embark on more effective use of its fleet by reviewing and rationalising capacity,” it said.

Samudera said it intends to explore tapping other regional markets for opportunities to grow its container shipping business.