High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
HONG KONG–Container shipper Orient Overseas (International) Ltd.’s (0316.HK) second-quarter revenue rose 10.6% from a year earlier, the Hong Kong-listed company said Friday, as freight rates and shipping volume rose during the period.
The company, which is controlled by the family of former Hong Kong Chief Executive Tung Chee-hwa, said its revenue for the three months ended June 30 rose to US$1.56 billion from US$1.41 billion, boosted by a 3.7% increase in average revenue per 20-foot-equivalent unit, or TEU. The company doesn’t report quarterly profit figures.
Orient Overseas’ total shipping volume during the quarter rose 6.7% to 1.34 million TEUs from 1.26 million TEUs.
Orient Overseas, which ships finished and semi-finished goods ranging from toys to garments to the West from Asia, said in March it expected trading conditions in 2012 to remain tough. It posted a 90% fall in 2011 net profit, as high fuel costs and overcapacity continued to weigh on its bottom line.
– Joanne Chiu, Dow Jones Newswires
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