GERMANY's Rickmers Maritime first quarter profit declined eight per cent year on year to US$9.9 million, drawn on revenues of $33.9 million, which were down four per cent.

Blamed were higher costs and lower vessel utilisation, the latter, a result of the redelivery two 3,450-TEU ships, which were off-hire for 51 days. Worse, said the company, was that a 5,060-TEU ship with engine problems was off-hire for 20 days.

The two 3,450 TEUers are scheduled to start year-long contracts with Maersk Line, with an option to renew for another year, reports Lloyd's List. The 5,060-TEUer is on a period contract with MSC until mid-2015.

Vessel operating expenses increased 13 per cent to $9.9 million in the first quarter due to off-hire vessels and bunker charges in repositioning the two 3,450 TEUers as well as engine repairs to the 5,060-TEUer.

But higher costs were offset by a 22 per cent reduction in finance costs to $5.5 million on the back of lower outstanding balances on loans and the expiration of interest rate swap contracts.

Rickmers Maritime has $428.7 million in outstanding loans as of March 31 after repaying $15.1 million in debt during the first quarter. An additional $35 million in debt repayments are due this year.

Rickmers Trust Management CEO Thomas Preben Hansen, who oversees Rickmers Maritime, said that the market is clouded by overcapacity. "Demand is unlikely to absorb the prevailing over-supply in the short term," he said.