The exceptional unit costs rise reported by OOIL for 21H2 shocked many analysts. What may have gone unnoticed are the oversized provisions booked not only for its commitment to Long Beach Terminal but also other OPEX and employee compensations
COSCO and OOCL will launch a new A3 Express (A3X) service connecting Shanghai, Shekou, Brisbane and Sydney from 31 May 2022. The new service will complement COSCO and OOCL's existing services linking North East Asia with Australia’s east coast that is currently provided through the A3N, A3C and A3S services: A3N Rotation: Yokohama, Osaka, Busan, Qingdao, Shanghai, Kaohsiung, Melbourne, Sydney, Brisbane, Yokohama A3C Rotation: Shanghai, Ningbo, Melbourne, Sydney, Brisbane, Kaohsiung, Xiamen, S
OOIL's top line come out in line with what we saw in the Taiwanese liners. The big YoY growth should be expected but the sequential growth in revenue should surprise positively.
OOCL’s second half net profit came out after market about $1bn (i.e. 20%) below our estimate on much higher than expected operating expenses. Having been a more costs efficient operator for most of the past couple decades, OOCL reported much higher unit costs than the industry average for 21H2.
OOIL is likely to report net profit over $5bn for 2H21 and $8.3bn for FY21, in our estimates, beating the average consensus estimates. OOIL reported $2.8bn as net profit for 1H21. In 2H21, revenue increased $2.7bn HoH, driven primarily by the increase in average freight rates...
The new China-USWC service branded as SEAX by COSCO and Pacific China South Express (PCSX) by OOCL will be the largest independent transpacific service operated outside of the 3 Alliances' network. The service calls at Shanghai, Fuzhou, Xiamen, Yantian, Long Beach, Shanghai using 6 ships of 10,000 to 14,600 teu. The first sailing was made on 20 November. At Long Beach, the service will call at LBCT where it will not face the long queues that other carriers are facing at San Pedro Bay ports. CO