Orient Overseas (International) Limited generated a profit attributable to equity holders of US$137.7 million in 2017, compared to a loss of US$219.2 million in 2016, according to full-year results released by the company.

Group revenue for the year came to US$6.1 billion, 15.3% more than in 2016.

The group’s shipping line OOCL transported a total of 6.3 million TEUs in 2017, a year-on-year growth of approximately 3.6%. In particular, the line grew its trans-Pacific volumes by 16.3% and by 19.7% on the Asia-Europe trade lane.

“The economic backdrop for 2017 was more robust than forecasters had expected,” said C C Tung, chairman of OOIL. “Following a decade of low growth, we saw healthier performance in both GDP and trade volumes across most of the world’s major economies. This was a welcome change after the industry’s low point of 2016. This synchronicity of growth, a rare phenomenon in recent memory, may bode well for the sustainability of the recovery.”

Tung said that growth on the supply side continues across the trade lanes.

“Even if the ordering of new vessels remains muted in relative terms, upsizing of capacity continues in certain key routes,” he said. “Ultra-large vessels ordered in the past few years are now being delivered and brought into operation. Furthermore, as trade growth improves, the industry continues to introduce additional services using cascaded or previously idled capacity. This combination of better economic growth and continuing (if moderated) growth in supply, along with higher bunker prices, means that for OOIL and our peers, the environment remains merely one of gradual recovery, not the boom that some analysts expected when improved economic data first started to appear.”

During the year, OOCL itself took delivery of five new 21,413 TEU vessels from the Samsung Heavy Industries shipyard and received the sixth and final one in January 2018.

The second phase of the company’s Middle Harbor Redevelopment Project at the Long Beach Container Terminal was also completed, with operations commencing in October 2017.

“Tying together the success of these three strands, our liner activities, our terminal activities and our logistics activities, are many things, not least the OOCL take-it-personally spirit, which applies to everything we do, from delivering quality service to handling customer relationships and managing costs,” Tung said. “A key element of being able to deliver this total service is our approach to digital technology. In addition to enhancing supply chain visibility for customers, we are also embracing the use of data analytics to enhance yield management and internal operating efficiencies. The OOIL group remains fully committed to continuing its quest to invest in the development of digital technology.”

Tung added that, once the new large vessels scheduled to be delivered in 2018 have been brought into service, the group is hopeful that the industry will start to enjoy greater stability than it has for many years, given a comparatively low order book for 2019 and 2020, and taking into account the improved economic data.

“In the meantime, we maintain a positive, if somewhat cautious, stance,” he said. “Against this gradually improving economic background, and in the context of a consolidating industry, the future for OOIL appears to be promising. We are well placed to continue to grow, and look forward to maintaining our track record of being amongst the most consistently highest performers in the industry.”