Date
15 December 2017
Alan Tung expects 3.7 percent growth in demand for shipping services this year but tariffs will remain under pressure. Photo: HKEJ
Alan Tung expects 3.7 percent growth in demand for shipping services this year but tariffs will remain under pressure. Photo: HKEJ

OOIL sees cargo tariffs remaining under pressure

Orient Overseas (International) Ltd. (OOIL, 00316.HK) expects cargo tariffs to remain under intense pressure amid a lackluster global market.

Conditions have not improved since the second half last year, the Hong Kong Economic Journal reports, citing OOIL chief financial officer Alan Tung.

The shipping company posted a net profit of US$284 million for 2015, up 4.9 percent from a year earlier.

About 84 percent of the profit came during the first half, driving interim profit 31.6 percent year on year.

The company handled 5.58 million TEUs (twenty-foot equivalent units), unchanged from 2014.

Average revenue from each TEU, however, plunged 10 percent from a year ago.

The company expects 3.7 percent growth in demand for shipping services this year, Tung said.

[Chinese version中文版]

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