Wednesday , 19 September 2018
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OOCL volumes and revenues down as freight rates fall

Hong-Kong based shipping line, Orient Overseas Container Line (OOCL) has suffered a poor set of interim results with total volumes and revenues down across all its global trades.

Over the first half of the year, total volumes fell by 2.3% to 2.74m teu compared to the same period in 2014 while total revenues recorded a 6.4% drop to US$2.71bn.

Low freight rates and depressed demand have beset the worldwide container industry in 2015 and the former is reflected in the 4.2% decrease of average revenue per teu against last year’s results.

Financially, the second quarter was significantly worse than the first as revenues dropped by 9.3% and average revenue per teu decreased by 7.4%. However, container volumes did bounce back to a 2.6% increase on the intra-Asia/Australasia trade.

Across 2015’s first six months, OOCL’s Trans-Atlantic business faltered the most, falling by 7.5% in volumes whilst its intra-Asia/Australasia segment was its most stable, only decreasing by 0.3%.

In terms of revenue, the biggest cause for concern is the Asia/Europe trade, which was down by 15.6% from US$588m to US$496m.

In April, the carrier placed a US$950m order for six 21,000 teu vessels, set for delivery by November 2017, with an option for an extra six.