The impact of lower demand, easing of congestion at ports, and easing of capacity constraints, is beginning to take its toll on carrier results.
In its latest announcement for the fourth quarter ended December 31, 2022 - compared with the same period in 2021 - Orient Overseas Container Line (OOCL) reported that revenues had decreased by 34.8% to $3 182.3 million.
Total liftings and loadable capacity were down 5.6% and 2.6% respectively, while the overall load factor was 2.7% lower than 2021.
Overall average revenue per TEU decreased by 30.9% quarter on quarter. However, the full-year results for 2022 show revenue growth of 19.1%.
Loadable capacity decreased by 4.3%. The overall load factor was 1.5% lower than 2021, while average revenue per TEU increased by 26.7%.
Shipping major AP Moller-Maersk told Reuters last week that lower container volumes and freight rates would drive a four-fold plunge in profits this year.
The carrier has predicted that global demand for shipping containers by sea is likely to fall by as much as 2.5% as a build-up in inventories is unwound.
