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OOIL goes into red for H1OOIL goes into red for H1

Orient Overseas (International) Limited, the parent of Hong Kong line Orient Overseas Container Lines (OOCL) dropped into the red for the first half turning in a net loss of $15.3m compared with a profit of $116.5m for the corresponding period of 2012.

Vincent Wee, Hong Kong and South East Asia Correspondent

August 8, 2013

1 Min Read
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OOCL blamed the poor results on lower freight rates amid tighter competition. "The operating environment in the first half of 2013 was characterised by the deterioration of freight rates from the last quarter of 2012, especially on the Asia-Europe trade, and the extremely competitive freight rates recorded in both the Trans-Pacific and the Intra-Asia trades. A series of rate increases during the second quarter in the market on the East West trades generally could not be sustained," the company said in an announcement.

Total liftings fell 1.5% while average freight revenue per teu for the period was $1,088, a decrease of 2.2% over the 2012 first-half average of $1,112 per teu. The drop in volume and the competitive freight rate environment resulted in reduced contributions, OOCL said.

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About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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