Hong Kong-based Cosco subsidiary OOCL has reported a significant increase in profits for the past year, driven by elevated freight rates, according to the company's latest financial results.
The carrier witnessed a 25% revenue growth to $10.7 billion for the year, up from $8.3 billion in 2023. Its operating profit soared to $2.6 billion in 2024, compared to $1.4 billion the previous year.
However, the growth in volumes and capacity was relatively stagnant year-on-year. The company carried a total of 7.59 million TEUs, marking a 3% increase from 2023, which is half the rate of the global volume growth of approximately 6%, indicating a potential loss of market share.
The shipping capacity saw a marginal increase from 965,000 TEUs to 986,000 TEUs, a rise of just 2%.
In 2024, OOCL took delivery of six 24,188 TEU and one 16,828 TEU self-owned new container ships. Additionally, the company chartered in six 13,000 TEU series brand-new container vessels, with the first ones set to begin operations as early as 2026.
"These vessels possess excellent navigational capabilities and can be flexibly deployed across different routes," stated the company. "Amidst the current full shipyard orders, this charter arrangement ensures further growth of OOCL's fleet size, enabling us to seize development opportunities and enhance flexibility for future capacity adjustments."
Looking ahead to the coming year, OOCL expressed confidence that its "dual-brand strategy" with parent company Cosco has positioned it well to embrace opportunities and address challenges through highly efficient vessel utilization and exemplary cost control.
The company acknowledged that the full impact of the ongoing alliance reshuffle on container supply chains has yet to be fully realized. "These factors do not operate in isolation; they are interactively intertwined, adding to the complexity of the shipping market," it noted.
As we enter 2025, the situation continues to evolve. There are signs of de-escalation in the Red Sea situation, where the potential resumption of passage through the Suez Canal is expected to release capacity and normalize freight rates.
The US administration's new policies are also impacting the global economy and supply chain, both in the short and long term. While these impacts may vary, their significance should not be underestimated.
"The reshaping of the global supply chain will undoubtedly have a long-term effect on the container shipping market," the company concluded.
