OOCL’s volumes rise, revenues sink

The Hong Kong-based container carrier transported 1.5 million TEUs in the second quarter of 2016 on revenues of $1.1 billion.    Ocean carrier OOCL transported 1.5 million TEUs in the second quarter ending June 30, 2016, a 6.6 percent increase from the same period last year.
   However, the Hong-Kong-based carrier’s revenues tumbled 16.6 percent year-over-year to $1.1 billion.
   The operational update, which contains only volume figures and container volumes is published by OOCL’s parent company Orient Overseas (International) Ltd. (OOIL).
   In a commentary, Drewry Maritime Equity Research, said it remains negative on the container shipping segment.
   “Our pessimistic view has grown stronger after OOIL’s performance. Earlier this month, Hapag Lloyd (HL) guided for a decreasing EBITDA and EBIT for FY16,” it said. “Both OOIL’s operational update and HL’s statement gives an early read on the sector’s 2Q performance and how the quarter has likely developed for the industry. We have been negative on the container shipping sector and have in our last update alluded to recovery being further away as the industry realignment continues.”
   Drewry said  “We maintain our neutral rating for OOIL to reflect lower than-expected decline in revenue and freight rates,” and added that based on the company’s performance in the first half “we remain skeptical if OOIL will be able to outperform its peers this year given the current industry downturn.”
   OOCL’s performance in the second quarter was similar to its results for first half of 2016, in which container volumes rose 5.5 percent year-over-year to 2.89 million TEUs, while revenues fell 16.9 percent year-over-year to $2.25 billion.
   By trade lane, OOCL reported the following results for the second quarter of 2016 when compared to the second quarter of 2015:
     • Transpacific, volumes up 15.4 percent to 375,071 TEUs, revenues down 18 percent to $403 million;
     • Asia/Europe, volumes up 4.3 percent  to 233,658 TEUs, revenues down 19 percent to $178 million;
     • Transatlantic, volumes up 4.7 percent to 97,030 TEUs, revenues down 14 percent to $128 million;
     • And intra-Asia/Australasia, volumes up 3.8 percent to 810,277 TEUs, revenues down 15 percent to $427 million.