© Ein Dahmer (CC BY-SA 4.0)

Carriers hit by plunging freight rates

OOCL revenue down 49% in fourth quarter

by Port News Editorial Staff

OOCL closed the last quarter of 2023 with a consistent year-on-year drop in revenue, earning $1.62 billion from its transportation business, 49% less than what it earned in the same period in 2022.

The financial performance of the COSCO-controlled group is mainly attributable to link services having low profit margins. Between October and December, shipping rates were down  52% year-on-year while cargo volumes increased by 7% (to 1.87m TEUs).

On the intra-Asia and Australasia routes alone, 895,000 TEUs were shipped (+6.5%) which  generated revenues of $ 574.4 million (-43.0%).

On the transpacific routes, cargo volumes totaled 482,000 TEUs (+19.9%) generating revenues of $598.2 million (-39.9%) .

On the Asia-Europe routes, volumes amounted to 388 thousand TEUs (+1.4%) and revenues to $315.7 million (-60.3%) and on the transatlantic routes volumes totaled 108 thousand TEUs (-11.5%) and revenues $133.2 million (-65.2%).

Translation by Giles Foster

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