Container trade economics – what to look for now
Making sense of a fools’ game
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By Mike Wackett
Ocean carrier OOCL’s first-quarter performance indicates there is concern that its normally conservative parent, Orient Overseas International, might have been a tad optimistic about the level of profit this year.
Earlier in the year, OOIL told investors that, after posting just a $47m net profit for 2013, it expected to reverse the decline and deliver an estimated $200m profit in 2014.
The rewards would be reaped from a “significant improvement in unit costs” and the deployment of “more efficient newbuildings”, especially on ...
Comment on this article
Ricky Forman
April 28, 2014 at 3:13 pmCarriers should be selling container FFA’s to mitigate their spot rate exposure. This natural hedge along with reducing unit costs is the only way forward for them. Carriers are literally throwing money down the drain by not protecting the income side of their business.