Hong Kong-based shipping company OOCL has posted a 0.5 per cent increase in revenue per TEU in the third quarter of 2014 compared to the same period of last year.
This was despite a 21 per cent increase on Asia-Europe trade volumes, and a 17.3 per cent increase in revenue on Asia-Europe trade to US$310m.
Trans-Pacific lines saw steadier growth, with volume increasing 6.3 per cent and revenue growing 5.5 per cent year-on-year to US$519m; a steady but not significant growth on lines that account for around one-third of OOCL’s business.
“The better-than-expected supply demand conditions and the low base last year helped to support the freight rate uptrend. Looking forward, despite the recent clods over the global economy, we expect the freight rate to show a stabilisation trend in the following quarters given the low base,” Citi Research analysts told JOC.com. “On the other hand, we also see the upside of freight rate to be capped due to the industry oversupply condition, which is likely to deteriorate in 2015 if large vessel delivery starts to pick up.”
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