COSCO, OOIL to see stronger growth in Q3: report

This comes after posting a record-high quarterly revenue and net profit in the second quarter.

The container shipping industry is expected to see stronger growth in the third quarter of the year, after COSCO and the Orient Overseas (International) Limited (OOIL) posted record-high revenue and net profit in the second quarter.

COSCO announced that it expects a positive profit after posting a net profit of RMB37.09b (approximately US$5.72b) in the first half of 2021, up from RMB1.13b (US$174m) in 2020. This was driven by stronger freight rates with China Containerized Freight Index increasing 134% year-on-year (YoY).

Jefferies estimated that with this projection, the second quarter net profit stands at RMB21.6b (US$3.33b), surpassing the record high RMB15.5b (US$2.39b) in the first quarter.

OOIL, meanwhile, reported a revenue increase of 119% YoY and 15% quarter-on-quarter to a new quarterly high of US$3.5b driven by increases in the average freight rates.

“We expect a positive reaction to COSCO's positive profit alert and OOIL's operational update with record-high quarterly revenue and net profit,” Jefferies said in a report.

“In fact, with spot rates continuing to hit new weekly all-time highs – and our expectation that this will continue in the near term – 3Q21 should be another record quarter.”

Jefferies forecast that container freight rates will continue to inch up on the back of supply bottlenecks with port congestion in Europe and the US that will likely worsen due to the recent Yantian port closure.

Yantian is now back to 85% operations, but with congestion of 3 to 4 days at South China ports.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Unemployment rate rises to 5.4% from February to April
The total number of unemployed people stands at 206,100.   The unemployment rate rose by 0.4 percentage points to 5.4%  from February to April, when compared to the January to March period.    Based on the data from the Census & Statistics Department (C&SD), the total number of unemployed people from February to April was 206,100, an increase of 17,600 from the preceding three-month period.   Meanwhile, the number of unemployed rose by around 25,000 to 142,000, translating to a rate of 3.8%.   With the increase in the number of jobless and underemployed individuals, total employment dropped to 3,559,200, whilst the labour force fell to 3,765,300.   The deterioration of Hong Kong’s labour market however should see an improvement in the coming months, according to Secretary for Labour & Welfare, Dr Law Chi-kwong.   The receding local epidemic situation and progressive relaxation of social distancing measures, the new round of Consumption Voucher Scheme, and Other relief measures including the 2022 Employment Support Scheme should help drive improvement in the employment sentiment, said the C&SD.