Orient Overseas : To Further Hike Freight Rates For North Europe To Asia Route
04/19/2012| 04:07am US/Eastern
HONG KONG --(Dow Jones)- Orient Overseas (International) Ltd. (0316.HK) plans to further raise rates for container shipments for the North Europe to Asia route from May 15, the Hong Kong-based shipper said Thursday, as part of plans to boost profitability after its net profit plunged last year.
The shipper's container freight unit Orient Overseas Container Line, or OOCL, said in a statement it plans to increase freight rates by US$200 per 20-foot-equivalent unit, or 40-foot-equivalent unit, for all shipments through the trade route.
The latest rate hike comes after OOCL raised its freight rate for the same route by US$200 per 20-foot-equivalent unit and by US$300 per 40-foot-equivalent unit, starting last Sunday.
The container shipper didn't disclose its existing freight rate on its North Europe to Asia route, but it noted the current freight rate is below the required level to cover its operating and transportation costs.
The company--controlled by the family of former Hong Kong Chief Executive Tung Chee-hwa--in March posted a 90% fall in 2011 net profit, as high fuel costs and capacity oversupply continued to weigh on its bottom line.
-By Joanne Chiu, Dow Jones Newswires; 852-2802-7002; email@example.com