OOCL’s Q1 revenue plunges 57.8%

OOCL Spain naming in China
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Orient Overseas International (OOIL) reports a 57.8% drop in revenues for the first quarter of 2023 as the plunge in container freight rates takes its toll.

OOIL, which operates the Overseas Orient Container Line (OOCL), reported revenue of $2.18 billion for the first quarter of this year, down 57.8% from the same three months in 2022.

With an 80% drop in spot rates reported by container trade analysts and now being factored into contract rates, OOCL reported sharp declines in revenue on all trades except the transatlantic in the first quarter.

OOCL revenue on Asia-Europe traffic decreased 67.9% year-on-year to $489.5 million in the first quarter of 2023, trans-Pacific revenue decreased 65.6% to $649.8 million in the first quarter of 2023 million and revenue within Asia/Australasia fell to $724.4 million in the first quarter of this year, down 49.9%. Only the relatively small transatlantic traffic for OOCL recorded a revenue increase of $311.9 million in Q2023, up 4.7% year-on-year.

OOIL said total revenue per TEU fell by 56.4% in the first quarter of this year compared to the same period in 2022.

The line saw a 3.2% decline in volume but a 0.7% increase in chargeable capacity in the first quarter of this year. As a result, the overall load factor fell by 3.3% year-on-year in the first quarter.

Source: News Network

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