OOCL reports lower first-half revenues

25/07/2013

Orient Overseas Container Line has experienced a difficult first half of the year, reporting lower volumes, revenues and load factors than a year ago.

In its quarterly unaudited update, the Hong Kong-headquartered carrier reported a 3.7% drop in first-half revenues to $2.8 billion, based on a 1.5% decline in volumes to 2.5 million teu, and a 2.2% decline in average revenue per teu.

The carrier’s overall load factor was 2.4% lower in the first half and its loadable capacity increased by 1.8%.

In terms of percentage volume declines, the transatlantic trade was its worst-performing region as first-half volumes slipped 7.2% to 197,264 teu.

Transpacific trade volumes declined 4% to 606,996 teu, Asia-Europe trade volumes slipped 2.7% to 414,869 teu but volumes on intra-Asia/Australia services, its largest region, increased 1% to 1.3 million teu.

The half-year operational update is a turnaround from its performance in the first quarter when revenues increased 3.6% year on year and volumes increased on all trade lanes except the transatlantic.

The update shows that conditions deteriorated in the second quarter as revenues dipped 9.8% compared with a year ago and volumes slid 2.6%.

Declining second-quarter freight rates are reflected by a 7.3% drop in average revenue per teu.

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