OOCL revenue growth slows down in second quarter
Total revenues and liftings increased by 4% and 4.6% year on year, respectively, in the three months. But the pace was slower when compared to the same period of 2017
Average revenue per teu edged down by 0.6%, a reflection of weakened freight rates. REVENUES and cargo volume at Hong Kong-based Orient Overseas Container Line continued to grow in the second quarter of this year, albeit at slower pace amid tougher market conditions.
Total revenues in the three months increased by 4% year on year to $1.5bn, while total lifting volume rose 4.6% to 1.7m teu, according to the carrier’s latest operational update. The growth rates were 6.6% and 23.8%, respectively, in the same period of last year.
Moreover, average revenue per teu declined by 0.6% in April-June, compared to a 16.2% increase a year ago. Among OOCL’s four main trades, the transpacific services performed the best, seeing revenue up 11.2% to $587.2m and lifting up 7.2% to 505,712 teu. Its Asia-Europe revenue edged up by 1.3% to $302.6m, despite a 13.5% jump in volume to 335.094 teu. The transatlantic revenue and liftings were down 0.2% and 2.3%, respectively, to $124.5m and 106.124 teu. The Intra-Asia/Australasia trades recorded a 1.4% decrease in revenue to $448.1m, although volume moved up slightly by 0.5% to 744,608 teu. The overall load factor in the three months was in par with the year-ago period.
The second-quarter results came as Cosco Shipping Holdings last Friday closed its offer to acquire Orient Overseas International Ltd, OOCL’s Hong Kong-listed parent, having received about 98.43% of OOIL’s issued share capital. Lloyd’s List reported that the Chinese shipping giant was poised to appoint OOCL’s new management, which includes two chief executives, shared by OOCL’s existing chief executive Andy Tung and CSH’s current president Wang Haimin.