OOIL revenue falls from great heights 

Orient Overseas International has revealed a decrease in income and benefits in its break results for the first half of 2023. 

The parent company of ocean transporter OOCL posted an income diminishing of 59%, from US$11.1 billion in the main portion of 2022 to US$4.5 billion in the principal half of this year. 

OOIL in a proclamation said the “extraordinary” economic situations of recent years had expected, to reach its conclusion. 

“The long, steady decline in freight rates, which began around the middle of last year, continued during the first half of 2023,” the company said. 

OOCL’s all-out liner liftings for the principal half of 2023 diminished by 1% contrasted and a similar period in 2022, and complete income diminished by 60%, bringing about a 60% lessening in income per TEU. 

“The fall from the great heights of 2020-22 has certainly been spectacular in terms of both absolute dollar value and terms of percentage, but this is simply a reflection of just how high the freight market had risen,” said OOIL. 

OOIL said the OOCL Logistics business had seen some progress in the main portion of 2023 despite the expanded “consumer caution” and easing back interest for products. OOIL was additionally happy with the development of its domestic business. 

“Our ocean freight business revenue has returned to a normal level of previous years while increases were noted in handling volume in TEU,” it said. 

The company said inventory levels had ascended in various bringing in economies, making merchants in Australia and the US adopt a more careful strategy in requesting new goods, which decreased demand for container transport. 

“There is also the uncertainty of not knowing exactly what the net fleet growth, in terms of effective capacity, will be in the coming months and years. No one can predict with accuracy the extent to which, in any given period, capacity from new deliveries will outpace the loss of capacity driven by scrapping and speed reductions, whether for CII/EEXI compliance or simply for cost reasons,” said OOIL.