Hong Kong-based container carrier Orient Overseas Container Line (OOCL) reported that its volumes and revenues continued rising during the third quarter of 2017.
For the quarter ended September 30, OOCL’s total volumes were 5% up from the same period last year. During the period, the company handled 1.59 million TEU, up from 1.52 million TEU reported in the same quarter a year earlier.
The Asia/Europe trade saw the largest increase in volumes, which were at 297,897 TEU, up by 24.7% from 238,844, followed by the Trans-Pacific trade with 474,794 TEU, a rise of 14.1%, and Trans-Atlantic trade which saw an increase of 13.6% percent in volumes, handling 110,942 TEU. The company’s Intra-Asia/Australasia trade handled 715,693 TEU, 7.1% less in the quarter.
Total revenues for the third quarter of 2017 were up by 26.5% to USD 1.45 billion, compared to USD 1.14 billion reported in the third quarter of 2016, mostly driven by the Asia/Europe trade which reported a 57.6% surge in revenues to USD 305.7 million from USD 193.9 million.
OOCL said that loadable capacity increased by 9%. The overall load factor was 3% lower than the same period in 2016. Overall average revenue per TEU increased by 20.6% compared to the third quarter of last year.
For the first nine months of 2017, total volumes increased by 6.2% over the same period last year and total revenues recorded a 19% growth. Loadable capacity increased by 6.6%. The overall load factor was 0.3% lower than the same period in 2016, while overall average revenue per TEU increased by 12.1% compared to the same period last year.
Earlier this week, COSCO Shipping Holdings’ takeover bid for Orient Overseas International Limited (OOIL), the parent company of OOCL, passed the anti-trust review in the United States.
The go-ahead was granted after COSCO Holdings’ shareholders approved the deal at the extraordinary general meeting held on October 16.
The takeover offer was made in July this year when COSCO Shipping Holdings and Shanghai International Port Group (SIPG) placed a pre-conditional voluntary general offer to acquire all issued OOIL’s shares at an offer price of HKD 78.67 (USD 10.07) in cash, totaling in USD 6.3 billion.
The EU and Chinese regulators still need to give the green light to the deal.
If completed, the merged unit would become the world’s third-largest container carrier, with a combined fleet of 400 vessels.