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OOCL Q2 volumes up 7% but turnover plunges 17% to $1.14bn

OOCL Q2 volumes up 7% but turnover plunges 17% to $1.14bn
Hong Kong-based line Orient Overseas Container Line (OOCL) reported a 6.6% rise in total volumes for the second quarter of 2016, up from 1.42m teu to 1.52m teu. Total revenues however decreased by 16.6% from $1.36bn to $1.14bn.

Like many other carriers, OOCL is feeling the burden of an increase in loadable capacity, which increased by 3.0%, against still soft market sentiment, whcih caused overall average revenue per teu to decrease by 21.8%.

Volumes have remained relatively good in the traditionally quiet second quarter, with growth across all sectors, and a 15.4% spike in transpacific volumes to 375,071 teu being particularly notable.

Although the overall load factor was 2.9% higher, the spaces were being filled at lower rates. Unsurprisingly the biggest drop in revenue came from the Asia-Europe sector, falling 19% to $177.8m from $219.5m previously. However the others were not far behind, with transpacific revenue falling 18% to $402.7m and transatlantic and intra-Asia revenue falling 14% and 15% to  $128.4m and $427.1m respectively.

For the first half, total volumes increased by 5.5% to 2.89m teu from 2.74m teu previously and total revenues fell 16.9% to $2.25bn from $2.71bn previously.

Loadable capacity increased by 4.6%. The overall load factor was 0.7% higher than the previous corresponding period. Overall average revenue per teu decreased by 21.2% compared to the same period the year before.