Orient Overseas (International) Limited (OOIL) has announced a loss of USD $10.3 million in the first half of 2018.
These results mark a decline from the first six months of 2017, when OOIL, which was recently bought out by Chinese ocean carrier COSCO, made a profit of $53.6 million.
However, OOIL increased the volume of containers it handled by 6%, when compared to the same period last year.
Between January and June 2018, 3.3 million TEU were transported on OOIL vessels.
Discussing the results in their wider context, OOIL Chairman C. C. Tung said: “Against the backdrop of a healthy global economy, the industry experienced good levels of cargo growth, and benefitted from moderate improvements in freight rates in many trade lanes.
“However, the financial results for the current reporting period reflect not only the positive growth story, but also some of the significant challenges that we have been facing.
“While it is true that global economies still appear reasonably robust, not least the USA, the uncertainty caused by the threat of looming so-called trade wars justifies a degree of caution.”
During the first half of 2018, OOIL also received the sixth and the last of the 21,413 TEU series new-build vessels from Samsung Heavy Industries in South Korea: the ‘OOCL Indonesia’.
It was revealed by COSCO recently that OOIL will continue to operate independently, despite the takeover.
Tung, who is stepping down from OOIL after 20 years as Chairman, added: “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”
“We will achieve all these while maintaining the separate listing, branding, management and staff of the OOIL group.”