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International Cooperation Department
Tel.: (+86-21) 65853850-8034
Fax: (+86-21) 65373125
E-mail: ICDept@sisi-smu.org
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International Shipping |
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| OOCL profit up 88pc to US$2.5b as sales rise 28pc |
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Date:2025-03-20 Readers:
2
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HONG KONG's Orient Overseas Container Line (OOCL), now a Cosco unit, posted a year-on-year 88 per cent net profit increase in 2024 to US$2.5 billion, drawn on revenues of $10.7 billion, up 28 per cent.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 60 per cent to $3.5 billion. Total volumes handled by the carrier increased four per cent to 7.6 million TEU.
The carrier attributed gains to strong import demand in developed economies and rapid trade growth in emerging markets.
But the Hong Kong-listed subsidiary of Cosco Shipping Holdings was quick to highlight the growing geopolitical uncertainties and industry-specific challenges that threaten to reshape global supply chains and test container shipping in the year ahead.
"Potential overcapacity may arise as new vessels are delivered, especially when the Suez Canal reopens," OOCL said in its earnings statement.
Other areas of concern included steadily tightening environmental regulations, the impact on supply chains from restructured carrier alliances and trade policies from the new US administration that will impact the global economy and supply chain "in the short and long run."
"These factors do not exist or function independently," OOCL said. "They are interactively intertwined, adding to the complexity of the shipping market ... their effects should not be underestimated."
Commenting on 2024, OOCL said the diversions around southern Africa as carriers avoided the Red Sea added transit time to voyages, while longshore labour uncertainty along the US east and Gulf coasts and the threat of new tariffs under the Trump administration led to a rise in frontloading by US importers.
"Geopolitical uncertainties not only shifted the dynamics between supply and demand for the entire industry, but also affected people's expectations and behaviours," OOCL noted.
While detours around the Cape of Good Hope absorbed about 10 per cent of available ocean capacity, they disrupted the on-time performance of carriers that was further impacted by poor weather in Asia and Europe. The resulting port congestion put further pressure on supply chains, OOCL said.
"These interconnected factors helped push freight rates to a post-pandemic peak around the middle of the year, especially on trans-Pacific routes," the carrier said.
https://www.shippingazette.com/news?news_id=9250300000548
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