As shipping lines reveal their full-year (FY) 2023 results, it’s clear that the glory days of the pandemic years are over *.
In a trend which will be reflected in the results released by all major shipping lines for full-year (FY) 2023, Orient Overseas (International) Limited has posted significantly lower figures in its FY company statement.
The company has announced a profit attributable to equity holders of $1 367.9 million for 2023, compared to $9 965.2m in 2022.
Earnings per ordinary share in 2023 were $2.07, compared to $15.09 in 2022.
“The exceptionally robust container shipping market that we witnessed during the pandemic is now far behind us, and we have returned to a rather normal yet uncertain year 2023,” says a company spokesman. “The cargo demand recovery was not as strong as many anticipated, affected by high inflation, slowdown in economic growth of advanced economies, as well as the consumer spending patterns shifting in the post-pandemic.
“As carriers' schedules became more reliable, retailers opted for a just-in-time approach when restocking, thereby delaying demand to a certain extent. On the supply side, with the alleviation of bottlenecks, and the continuous delivery of new ships, the change in supply has undoubtedly exceeded demand and the continuous decline of freight rates.”
Tension in the Red Sea will continue to be a key factor affecting the container shipping market – and with shipping companies continuing to navigate through the Cape of Good Hope in the coming months, and in combination with the traditional peak season prior to Chinese New Year, freight rates have risen.
* For more perspective, read this: "Carrier revenue declines need context".
