Orient Overseas Container Line (OOCL) has once again posted record results, with 2021 delivering the highest-ever revenue, liftings and profit figures for its core container shipping and logistics business.
It’s all down to the ongoing Covid-induced demand-supply shortfall which is unlikely to be resolved any time soon.
2021 saw port congestion, bad weather delays, labour disputes, shortages of truckers, the Suez Canal incident, insufficient rail capacity, empty box shortages in key locations, Covid-19 rules affecting the availability of labour in terminals, depots and yards, quarantining requirements for vessel crew causing operational delays, and a range of other difficulties. “The global container shipping system is one large, interconnected network, as we have been reminded multiple times over the past two years,” a statement from the line points out. “Even seemingly small or time-limited incidents and delays can create powerful ripple effects around the world, and large disruptions can cause even more severe and long-lasting challenges.”
The line’s container transport and logistics business reported Ebit of US$7 387 million, representing an Ebit margin of approximately 44.0%, while liner liftings grew to 7.6 million TEUs.
In September last year, the Group announced that it had placed orders for ten 16 000-TEU vessels, representing an investment of US$1.576 billion, for delivery between the fourth quarter of 2024 and the fourth quarter of 2025.
These complement the twelve 23 000-TEU vessels that are already being built, for delivery during 2023-2024.
In terms of outlook, the line expects more of the same during the first half of this year, with predictions more difficult beyond that.
Here's a look at OOCL's revenue for last year compared to 2020:
