CMA CGM acquisition target Neptune Orient Lines (NOL) remained in the red in the first quarter.

Singapore-headquartered NOL reported a Q1 net loss of $105m compared to an $11m loss in the same period in 2015. Reflecting in part its sell-off of APL Logistics in the second quarter of last year revenues slumped a hefty 43% to $1.14bn in Q1 this year against $1.98bn a year earlier. Revenues from liner shipping brand APL also fell 29% to $1.14bn from $1.6bn a year earlier.

“Worsening overcapacity of shipping tonnage in 2015 hit the industry well into first quarter 2016. Freight rates which declined across major trade lanes to historic low are expected to remain weak in the face of slower demand growth,” said NOL group president and ceo Ng Yat Chung.

“The difficult market condition is prompting consolidation and changes in alliances in the industry.”

Last week CMA CGM got approval from European Commission for its $2.4bn takeover offer for NOL. The Singapore company said other required regulatory approvals were expected by mid-year.