Orient Overseas Goes For Volume Over Rates as China Drop Looms — Panjiva


Orient Overseas Goes For Volume Over Rates as China Drop Looms

China 1758 Corp - Shipping 608 Earnings 365 Mode - Containerized 1005 Mode - Seaborne 1273 Theme - Rates 141 U.S. 3297

Orient Overseas, the container-line controlled by Cosco Shipping Holdings, reported 4Q revenues which climbed 13.5% year over year. While its average-achieved shipping rates on Trans-Pacific routes climbed 18.8% that lagged a 32.2% surge seen in market rates. Similarly for Asia-Europe Orient Overseas’ rates fell 3.9% versus market rates which rose 0.5%. That would suggest Orient Overseas has prioritized market share – particularly on China-U.S. routes – over profitability. That may become a challenge as volumes decline on the back of the U.S.-China trade war. China accounted for 53.0% of...

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