Orient Overseas Container Line carried a total of 5.58 million TEUs in 2015, a year-on-year decrease of 0.18 percent, according to full-year results released by Orient Overseas (International) Ltd.

Loadable capacity increased almost 6 percent compared to 2014, while load factor dropped from 76 percent to 72 percent.

The group’s revenue fell by 8.7 percent year-on-year, while profit for the year was approximately US$284 million, a 5-percent increase compared to 2014.

“At the start of 2015, container-shipping companies enjoyed unforeseen conditions that were, almost without exception, positive,” said C C Tung, chairman of OOIL. “For those few months, substantially lower fuel costs and gains in momentum in the US recovery drove industry-wide results that were better than anticipated. Unfortunately, the economic context became increasingly complicated as the year progressed. The fall in oil prices led to a reduction in energy-related capital expenditure, and to some producers bordering on default. Trade growth was limited, and the Fed was signalling (and eventually implemented) a start to the normalization of interest rates. The second half of the year saw retail sales stagnating further, thereby reducing imports from Asia.

The imbalance in supply and demand worsened towards the end of 2015, driven by large amounts of new tonnage being introduced at a time of lacklustre volume growth in many trades and even shrinkage in others, according to Tung.

“Capacity had started to be taken out of the market in response to slower demand growth, and having witnessed a substantial fall in rates, lines were forced to surrender all of (or more than) the benefit of lower fuel prices to their customers,” he said. “For the full year 2015, OOCL’s liftings were essentially flat, with a drop in revenue, and of revenue per TEU of 10 percent. This reflects the challenging environment, particularly as the very tough second half took hold.”

Tung added that the first quarter of 2016 has been characterized by great macroeconomic uncertainty, but he is optimistic overall of the year ahead.

“We believe that we are well-positioned to face the coming challenging year, as well as to benefit from the up cycle when it comes,” he said. “We look forward to furthering our position as one of the leading carriers in the industry.”