OOCL Swings to Profit
Hong Kong-based international transportation and logistics company Orient Overseas International (OOCL) reported an interim net profit of US$138.9 million for the first half of 2019, swinging from a loss of US$10.3 million this time last year.
Overall revenue for the company rose 6 per cent to US$3.3 billion in the first half of this year from US$3.1 billion in the same period last year, said a stock exchange announcement from the the parent company of Orient Overseas Container Line.
In this period, container shipping industry has been quicker in responding to ever changing demands in its response to the underlying condition of our ever-changing markets and more complicated global economic and trade situations.
In terms of medium and long-term supply growth, the container-ship order book, as a percentage of the total fleet, is at low levels not seen for more than a decade.
Moreover, there are reports that scrapping of vessels has been greater this year than in the same period in 2018, a trend that may continue once IMO 2020 low sulfur regulations come in and render older vessels less economic.
In the short term where reduced levels of demand have caused existing operations to be unprofitable, the industry’s supply will have to react quicker to meet the changing demand.