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Increases in freight rates buoy OOCL revenues

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Orient Overseas Container Line saw revenues climb 5 per cent to almost US$2.88 billion in the first half of this year, buoyed by higher freight rates, especially in the second quarter.

The container shipping subsidiary of Orient Overseas (International), controlled by the Tung family, said total container volumes rose 6.1 per cent to 2.59 million teu (20-foot equivalent units) between January and June, up from 2.44 million teu.

Total revenue in the second quarter soared 10.6 per cent to US$1.56 billion teu against US$1.41 billion a year earlier.

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This included a 15.2 per cent increase in revenue to US$326.89 million on Asia-Europe services even though container volumes slipped 0.4 per cent to 223,743 teu. Higher revenue in the second quarter reflected the five increases in container freight rates that OOCL levied on the trade. The company also imposed a peak season surcharge on shipments from Asia to Europe from June 1.

There was also a 14.4 per cent rise in revenue on intra-Asia and Australasia services to US$548.68 million in the second quarter although container volumes rose 8.2 per cent to 687,996 teu.

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OOCL raised rates five times on the trade between April and June.

Intra-Asia and Australasia services remained the container line's top revenue earner.

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