HONG KONG'S Orient Overseas (International) Lines (OOIL), the parent of container line Orient Overseas Container Lines (OOCL), has reported an 8.3 per cent drop in revenue totalling US$1.4 billion in third quarter compared to the same period last year despite a 6.6 per cent year on year increase in global volume.
With an increase of 13.9 per cent in loadable capacity, the overall load factor was 5.1 per cent down on the same period in 2010. Overall average revenue per TEU dropped by 14 per cent compared to the third quarter of last year.
For the first nine months of 2011 ending September 30, volume increased 8.4 per cent year on year and total revenues recorded a 2.1 per cent increase. Loadable capacity increased 16.3 per cent and the overall load factor was 5.5 per cent lower year on year. Revenue per TEU fell 5.8 per cent compared to the same period last year.
OOIL managers described the Asia-Europe trade as "essentially a market share chase" determined by the actions of the top three players, Maersk Line, MSC and CMA CGM, and their ability to withstand losses.
OOIL chief financial officer Ken Cambie told Lloyd's List that the only way to improve Asia-Europe rates would be for the top three carriers to withdraw capacity. Smaller lines, he said, did not have the capacity to make a difference.
"It's in the hands of the big three," Mr Cambie said, adding that Maersk has already said it had no plans to do so.
OOCL reported a 12 per cent increase in liftings in its Asia-Europe business, to 231,505 TEU, compared with 2010, yet Asia-Europe revenue fell 23 per cent to US$272 million. Transpacific liftings were down 2.3 per cent year on year with a 19 per cent drop in revenue to US$485 million.
OOCL still saw improvement in its transatlantic and intra-Asia businesses, but OOIL management described the peak season on the transpacific trades as "very disappointing" and "does not see any real signs of slight pickup in volumes".