Home » Maritime » OOCL dubs 2011 a ‘disappointing’ year

Orient Overseas Container Line (OOCL) said the outlook for the full year 2011 is “disappointing” despite an increase in its container volume and revenue for the second quarter of 2011.

“The difficult trading conditions seen in the first quarter of this year have continued in the second quarter, and the outlook for the full year is disappointing,” said OOCL in a July 20 online statement. It said that though demand levels “remain reasonable” as reflected in an overall year-on-year increase in liftings, freight rates on east-west trades have dipped, particularly on the Asia-Europe trades.

The Hong Kong-based carrier saw its total volumes rise 6.5 percent in the quarter ending June 30 from the same period last year. Total revenues increased by 1.4 percent to $1.4 billion.

With an increase of 18.3 percent in loadable capacity, the overall load factor was 8.3 percent lower than the same period in 2010. Overall average revenue per 20-foot equivalent unit (TEU) dropped by 4.8 compared to the second quarter of last year.

For the first six months of 2011 ending June 30, total volumes increased by 9.4 percent over the same period last year and total revenues recorded an 8.5 percent increase. Loadable capacity increased by 17.6 percent, and the overall load factor was 5.7 percent lower than the corresponding period in 2010. Overall average revenue per TEU decreased by 0.9 percent compared to the same period last year.

OOCL said the deterioration in freight rates has happened “despite the need for improved revenues to offset the significant increases in the price of bunker and other energy related costs that have occurred this year.”

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