Advantages of acquisition by COSCO highlighted
Compared to the first half of 2017, OOCL liner liftings increased by 6 per cent while load factor reduced by 3.1 per cent. Revenue levels per TEU increased by 3.5 per cent.
The average price of bunker recorded by OOCL in the first half of 2018 was $383 per tonne compared to $306 per tonne for the corresponding period of 2017. As a result of the rise in fuel oil and diesel oil prices, bunker costs increased by 26 per cent in the first half of 2018 when compared to the corresponding period of 2017.
During the first half of 2018, the Group took delivery of the sixth and the last of the 21,413-TEU series newbuild from Samsung Heavy Industries in South Korea, namely, the OOCL Indonesia. All six vessels of the 21,413 TEUs series have been deployed in the Asia-Europe service and they mark an important milestone for the Group. As at June 30, 2018, no new-builds are pending for delivery; and no orders for new-buildings were placed in the first half of 2018.
OOCL Logistics revenue and contribution for the first half of 2018 increased by 10.1 per cent and 13.7 per cent, respectively, compared to the same period last year. Profit increased by 113 per cent compared to the same period last year. The contribution from International Supply Chain Management Service increased by 5.5 per cent while contribution from import/export services increased by 20.2 per cent and is attributed to FCL, FFW, CHB, Depot and AFFW business growth. The growth of its warehouse business, including better utilisation improvements of existing warehouse facilities, as well as CCL warehousing, system sales and 4PL business were all key activities contributing to the 28.7 per cent growth in domestic logistics business.
Commenting on the recent COSCO acquisition of OOIL, the outgoing Chairman of OOIL, Mr C. C, Tung, commented, “In a rapidly consolidating industry, I believe that this transaction offers tremendous opportunities both to OOIL and to the wider COSCO group. Together with greater scale and with increased financial resources, we will be able to combine the complementary strengths of our two liner businesses and COSCO’s terminal business, and thereby to create an industry leader, providing the widest of networks and the best of service to our customers, using ambitious growth targets and meaningful synergy benefits to create value for our shareholders, enhancing our business through information technology, and offering challenging and exciting careers to our employees.”
“We will achieve all these while maintaining the separate listing, branding, management and staff of the OOIL group. As I step down after 22 years as Chairman, I look forward with confidence to seeing the OOIL corporate culture of teamwork and our take it personally spirit play their part in the creation of a new industry champion, and offer every encouragement and wish every success to all those who will deliver this goal,” said Mr Tung.
Said the incoming Chairman of OOIL, Capt. Xu Lirong, “This transaction is a common choice for both sides to follow the development trend of container shipping industry and realise sustainable development. I believe that after OOIL becomes a member of COSCO SHIPPING, we can effectively combine the respective strengths of OOIL and COSCO SHIPPING Lines and optimise our global network, thereby achieving greater economies of scale and synergies. This will not only enable both companies to enhance the overall profitability and promote the sustainable development, but will also allow us to offer customers more product choices. They can thus experience our better services.”
