English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

OOCL optimistic despite profit drop

HONGKONG: Orient Overseas (International) Limited, trading as OOCL, has reported a net profit of US$47 million in 2013 – down from US$295 million the previous year.

Gross revenue fell year-on-year from US$6.45 billion to US$6.23 billion due to what the company describes as an "operating environment characterized by muted demand and over-capacity."

Despite acknowledging a market imbalance due to a 5.7 percent increase in overall supply and a 4.2 percent rise in demand, OOCL took delivery of eight 13,208 TEU 'Mega' class new-build vessels and two 8,888 TEU 'SX' class new-build vessels during the year – representing net additional capacity of over 496,000 TEUs.

largest vessel ShenzhenGroup chairman C C Tung commented: "Seaborne trade growth for the liner industry was subdued in 2013. Freight levels were disappointing, especially during the first half of the year. During the second half of the year, both physical cargo movement and sentiment improved, resulting in a slightly better freight market. Although container shipping demand growth in 2013 was lower than earlier forecasts, capacity supply growth was also lower than forecasts which helped contribute to a much needed recovery in rates, albeit mild, during the second half of the year."

Tung said new deliveries last year increased overall market capacity nearly 1.4 million TEUs and their deployment on Asia-Europe routes had a knock-on effect on the trans-Pacific and resulted in considerable excess capacity intra-Asia and on Australasia trades.

Despite a forecast of more over-capacity in 2014, Tung expects a rise in global demand as a result of U.S. growth, the Eurozone recovery on more solid ground, and the continued economic expansion in China and Japan. "Indeed, such development should mean improved outlook for the Transpacific, Asia Europe and intra-Asia trades and more positive results for the industry as a whole," he added.

With an EBIT of US$72 million last year compared to US$3 million in 2012, Tung said OOCL's logistics business, particularly in the areas of international supply chain and import/export services, "will become a meaningful contributor to the group over the long term."

The company claims its Port of Long Beach middle harbour redevelopment project, due for final completion in 2019, will be the most competitive, efficient and environmentally friendly container facility in North America. As of December last year, the shipping group had liquid assets of US$2.4 billion and a net debt to equity ratio of 0.25 – up 13 percent year-on-year.

News

Written on 24/04/2017, 20:30
bank-deal-opens-maritime-green-doorLUXEMBOURG: April 22, 2017. The European Union's non-profit European Investment Bank (EIB) has signed a €150 million loan agreement with Dutch bank ABN...
Written on 21/04/2017, 19:44
air-cargo-volumes-rise-as-yields-remain-a-challengeGENEVA: April 20, 2017. IATA reports a slowing of air cargo volumes to a 1.3 percent rise in the three months to February 2017, compared to 2.3 percent...
Written on 21/04/2017, 18:40
u-n-cuts-cost-of-air-fleet-and-food-distribution-timesNEW YORK, NY: April 21, 2017. The United Nations is to cut its aircraft fleet and limit passenger flights to essential travel only, after revealing the...
Written on 19/04/2017, 20:20
benefits-to-outweigh-gothenburg-dredging-billGOTHENBURG, Sweden: April 18, 2017. A report by the Swedish Transport Administration (STA) says the SEK4.0 billion cost of deepening the approach to the...
Written on 18/04/2017, 19:37
siemens-to-set-up-logistics-head-office-at-expo-2020-dubaiMUNICH: April 18, 2017. Siemens is to base its logistics business for airports, cargo infrastructure and ports in Dubai and will move its headquarters to...
Written on 18/04/2017, 14:18
abu-dhabi-ports-provides-free-humanitarian-warehouseABU DHABI: April 18, 2017. Abu Dhabi Ports is providing the Emirates Red Crescent Authority (ERC) with a 550 square meter warehouse in Zayed Port as part...
Written on 13/04/2017, 19:11
emirates-sky-cargo-lifts-america-s-cup-challengerDUBAI: April 13, 2017. Bookmakers are giving America's Cup challenger Emirates Team New Zealand 3:1 odds to win the sailing competition when racing ends...
Written on 13/04/2017, 16:05
blockchain-used-in-pharma-supply-chainBEIJING: April 11, 2017. IBM and China-based supply chain manager Sichuan Hejia have launched the 'Yijian Blockchain Technology Application System', a...
Written on 12/04/2017, 18:10
k-n-and-alibaba-to-leverage-btb-ecommerceSHANGHAI: April 12, 2017. Kuehne + Nagel and Alibaba.com, the B2B business arm of the Alibaba Group, are combining their respective capabilities to offer...
Written on 12/04/2017, 16:58
dedicated-freighter-for-swiss-pharma-exportsMADRID: April 12, 2017. IAG Cargo has officially launched a weekly freighter service between Basel and Madrid to feed its Latin America network with Swiss...
Written on 11/04/2017, 20:15
miami-boosts-airfreight-traffic-eight-percent-by-valueMIAMI: April 11, 2017. The U.S. Department of Commerce says air cargo traffic through Miami International Airport (MIA) rose eight percent by value last...
Written on 07/04/2017, 22:03
u-s-roads-worse-than-namibiaWASHINGTON, DC: April 07, 2017. Testifying before the U.S. Senate Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and...
Written on 07/04/2017, 20:29
lng-bunkering-arrives-at-jacksonvilleJACKSONVILLE, FL: April 07, 2017. BBC Chartering has delivered two 260-ton cryogenic liquefied natural gas (LNG) storage tanks for Crowley Maritime's new...
Written on 06/04/2017, 23:00
air-cargo-upturn-will-it-lastGENEVA: April 06, 2017. IATA reports a 12 percent rise in freight tonne-kilometers in February compared to the same month last year - almost four times...
Written on 06/04/2017, 21:59
t-pod-designed-to-replace-swedish-trucksSTOCKHOLM: April 6, 2017. Swedish technology designer Einride has created an electric, self-driving “cargo with wheels” vehicle called a ‘T-pod’ that can...
Written on 04/04/2017, 22:06
mexico-president-inaugurates-new-apm-terminalLAZARO CARDENAS, Mexico: April 04, 2017. Mexico's president Enrique Peña Nieto and Denmark's prime minister Lars Lokke Rasmussen have inaugurated APM...
Written on 31/03/2017, 15:10
swiss-approve-commercial-drone-useLUGANO, Switzerland: March 31, 2017. The Swiss Federal Office for Civil Aviation (FOCA) has approved the use of drones by Swiss Post to carry laboratory...
Written on 29/03/2017, 22:13
laptop-ban-not-acceptable-says-iataMONTREAL: March 28, 2017. Less than a week after the imposition of a laptop ban on certain carriers flying to the UK and U.S. from parts of the Middle...
Written on 29/03/2017, 20:29
gcc-ecommerce-market-could-reach-us-20-billionSEATTLE/DUBAI: March 28, 2017. Amazon is to acquire eCommerce company Souq.com, the largest online marketplace in the Arab world with 45 million visits a...
Written on 28/03/2017, 21:10
qatar-backs-britain-as-may-signs-brexitLONDON/BIRMINGHAM: March 28, 2017. A day before Britain confirmed its formal departure from the European Union, the country signed an MoU with Qatar to...

- powered by Quickchilli.com -