Plunging Asia-Europe and trans-Pacific rates pulled down Orient Overseas Container Line’s fourth quarter revenue 11.2 percent on a 2 percent decline in volume.
Average revenue per 20-foot-equivalent unit dropped 9.4 percent, helping to bring fourth quarter revenue down to $1.348 billion
For the full year, the Hong Kong-based carrier’s revenue declined 1.5 percent to $5.5 billion despite a 5.6 percent increase in volume. Average revenue per TEU fell 6.7 percent for the year.
The declines come as several carriers prepare to report what are expected to be poor 2011 financial results during the next several weeks. OOCL company Orient Overseas (International) is scheduled to issue its 2011 financial report in March.
Like other carriers, OOCL was hit hard by excess capacity and weak rates in Asia-Europe and trans-Pacific trades. Asia-Europe revenue fell 29.2 percent in the fourth quarter and 17.1 percent for the year. Trans-Pacific revenue was down 15.9 percent in the quarter and 6.8 percent for the year.
Intra-Asia and Australasia trades posted revenue gains of 1.8 percent for the quarter and 11.3 percent for the year, while volumes. Those trades, which already were OOCL’s highest-volume services, surpassed trans-Pacific services last year as OOCL’s highest-revenue routes.
In the smaller trans-Atlantic trade, revenue rose 1.1 percent in the quarter and 13.3 percent for the year on volume increases of 5.2 percent and 6.6 percent.
OOCL’s overall load factor fell 3.2 percent in the fourth quarter on a 2.1 percent increase in loadable capacity. For the year, OOCL’s load factor fell 4.8 percent as loadable capacity rose 12.3 percent.