OOCL 1H: Profits down, revenues up

IN LOCKSTEP with parent COSCO Shipping Holdings, Orient Overseas International Ltd (OOIL) has seen first half profits eroded by additional costs but recorded new highs in revenue and volumes handled.

Late last week OOIL announced a profit attributable to equity holders of US$728.0 million for the six-month period ended 30th June 2026, a 14.1% margin, compared to a profit of US$954.2 million for the same period in 2025. 

Earnings per ordinary share for the first half of 2026 was US$1.10, whereas earnings per ordinary share for the first half of 2025 was US$1.44.

Revenue for 1H 2026 reached US$5,173 million compared to 4,876m in 1H 2025, while the operating profit at US$720m was down from 954m.

Liner liftings grew to 4.1 million TEU from 3.9 million TEU while loadable capacity rose from 4,738, 000 to 4,990,000.

The global container market did not normalise in the first half of 2026 as many had anticipated at the end of last year, OOIL said. Instead, the year progressed amid the uncertainties.  With the escalation of conflict in the Middle East and repeated changes in the situation, the return to the Red Sea was once again delayed. 

“More importantly, in combination with the resulting sharp fluctuations in oil prices, heightened inflation expectations and higher EU carbon emission cost, not only placed cost pressures on liners, but also affected the global economic outlook.  On the other hand, the restructuring of global supply chains and the development of regional trade continues to bear fruit, while trade activity in emerging markets remained vibrant, providing underlying support to the market. 

“As global trade patterns continue to evolve and adjust, OOCL has continued to strengthen its East-West network operations while actively expanding its presence in emerging markets.  We have deepened our development and optimisation in regional markets and strengthened the extension of our end-to-end business.  Through a flexible but prudent operating model and a globalised supply chain framework, we strive to help customers address challenges and become a trusted long-term partner. 

“To this end, we continue to leverage the strengths of the Ocean Alliance while deepening collaboration with COSCO SHIPPING Lines.  We will continue to enhance service efficiency, strengthen cost control management and build a high-quality supply chain network that combines resilience and flexibility to address uncertainty in the shipping market.

“OOCL recorded its highest ever first half-year liftings and liner revenue outside of the pandemic period.  The total liftings for the first half of 2026 increased by 5.2% and total liner revenue increased by 5.5% year on year. 

“In the first half of 2026, OOCL recorded an average bunker price of approximately US$582 per ton, an 8% increase compared to US$541 per ton in the same period of 2025.  The increase in bunker price and the rise in overall fuel oil and diesel consumption from operating a larger fleet resulted in higher bunker cost during the period.”

OOIL said at the time of writing this report, its vessels sailing on vast majority of long-haul routes were fully loaded, and this is expected to continue in the coming weeks.

“Looking ahead, the global trade landscape continues to evolve, and market volatility may become the new normal.  As new vessels continue to be delivered and the peak season approaches its end, freight rates may come under pressure.  Although the global economy and container trade continue to face considerable uncertainty, demand retains a certain degree of resilience,” the company said. 

“At the same time, sudden geopolitical risks, changing trade and tariff policies, diverging regional economic developments, recurring port congestion and fragmented environmental regulatory requirements may all disrupt supply chains.  These developments may from time to time test the responsiveness and adaptability of carriers, while also creating opportunities for their growth.”