OOCL's 4Q19 characterized by greater volumes, lower box earnings

Hong Kong-based Orient Overseas Container Line turned in some mixed results in the last quarter of 2019, according to the company’s most recent operational update.

 

For the fourth quarter of 2019 (ended 31 December  2019) box volumes increased by 4.8% compared to the same period last year, while total revenues were up 2.3% to US$1.6bn. Loadable capacity increased by 2.6%, while the overall load factor was 1.8% higher than the same period last year. Overall average revenue per teu dropped 2.4% on the 2018 4Q.

 

For the full year of 2019, total volumes increased by 3.8% over the same period last year and total revenues clocked up a 5.2% growth. Loadable capacity increased by 4%, while the overall load factor was 0.1% lower. Overall average revenue per teu increased by 1.3% compared to 2018.

 

In terms of liftings the best performing trade lane was the Trans-Atlantic which saw liftings increase 12.7% for the first quarter, and 12% for the full year. The worse performance was on the Trans-Pacific trade where volumes fell 1.1% during the fourth quarter and 0.4% for the full year 2019.

 

For revenue, the Trans-Atlantic route was up 9.9% during the fourth quarter and 15.3% for the full year. Again, the Trans-Pacific service was the worst  performer during the fourth quarter, recording a 5.2% decline. For the full year the service saw a fall of 3.1% in revenues earned.

 

Since the end of 2019, OOCL, in common with its competitors, has had to deal with the introduction of the mandatory 0.5% sulphur cap on marine fuel and the outbreak of the novel coronavirus which has virtually paralysed supply chains across the world, and ensured the company’s 1Q19 results will be severely affected.

 

In other news, OOCL is offering an extended free time period in the cargo detention calculation from February 10 to 16 in consideration of the coronavirus outbreak in China.

 

This is in addition to the arrangement presented in the customer advisory on February 3. This extension is only applicable to import cargo inbound to northern and southern China, and excludes other items such as storage and monitoring fees.

 

Customers are asked to use the OOCL webpage link to Tariff & Rate Enquiry for full price (including base rate, bunker related charges, security related charges and additional charges and surcharges reflecting high demand, such as Peak Season Surcharges) on www.oocl.com. Local surcharges and contingency charges may apply.

 

In general, the detention free time expiring on or after January 25 will be extended to February 9 for China exports, and February 16 for China imports.

 

Source:hongkongmaritimehub

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