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OOCL Q2 volume down 2.1%, revenues plunge 28.1% on Asia – Europe

OOCL Q2 volume down 2.1%, revenues plunge 28.1% on Asia – Europe
Hong Kong-based container line Orient Overseas Container Line (OOCL) could not escape the general slowdown in the boxship sector and saw second quarter total volumes falling 2.1% to 1.42m teu compared to the previous corresponding period.

The overall downtrend for the year is also reflected in the figures for the first half, with volumes decreasing 2.3% to 2.74m teu from 2.18m teu in the first half of 2014.

This was set against the backdrop of lower rates as well as total revenues decreased by 9.3% to $1.36bn in the second quarter and 6.4% to $2.71bn in the first half.

Rates were particularly badly hit on the Asia – Europe trade with revenues plunging 28.1% in the second quarter to $219.4m compared to $305.4m a year earlier. OOCL also reported an 11.8% drop in volumes to 224,004 teu in the second quarter. For the first half as a whole OOCL said revenues on the Asia – Europe trade fell 15.6% to $496.3m.

The situation was exacerbated as more capacity came onstream and loadable capacity increased by 7.1%, leading to an overall load factor 6.8% lower than the same period in 2014. For the first half, the capacity issue was more muted, with loadable capacity increasing by 2.8% and overall load factor 3.8% lower than the previous corresponding period. However, with more mega boxships on order, unless demand picks up, it is difficult to see how fortunes will improve in the remainder of the year.