OOCL'S REVENUE FALLS 63% IN SECOND QUARTER

Orient Overseas International (OOIL) reported a 62.6% drop in Q2 2023 revenue as container shipping returned to normal after an unprecedented boom during the pandemic.

Hong Kong-listed OOIL, which operates the OOCL (Orient Overseas Container Line) shipping line, reported second-quarter revenue of $1.98 billion, down 62.6% year-on-year in 2022.

Average revenue per TEU fell 63% in Q2 compared to the same period last year. The largest declines were recorded in the Asia-Europe and trans-Pacific shipping routes, with revenue down 67.8% and 68.7% in the second quarter of 2023 compared to the same period last year.

Meanwhile, the transpacific and Inner Asia/Australia routes recorded revenue declines of 36.9% and 55.4% between Q2 2023 and Q2 2022.

OOCL's capacity growth has outpaced demand growth. Output grew by just 1.3% in the second quarter of 2023 while the carrier's capacity grew by 8.7% as it began accepting new megamax vessels with a capacity of 24,000 TEUs into its fleet. As a result, the overall occupancy factor fell by 5.9% in the second quarter of 2023 compared to the same period last year.

In the first six months of 2023, OOIL's revenue reached $4.15 billion, down 60.2% year-on-year.

Source: phaata.com, 2023