ORIENT Overseas (International) (OOCL), one of the world’s biggest integrated container transport businesses has warned of challenges to the industry in its annual report.
While OOCL said in 2024 the global economy had gently continued its path towards recovery, looking ahead, the container shipping industry may face ever more challenges.
“Geopolitical uncertainties and changes in trade patterns will continue to bring challenges to supply chain management,” the report said.
“Unbalanced economic development amongst different countries or regions and the emergence of structural risks will bring some degree of uncertainty to demand.
“Potential overcapacity may arise as new vessels are delivered, especially when Suez Canal reopens.
“At the same time, FuelEU Maritime takes effect from 2025, while the existing environmental regulatory requirements continue to be tightened, all of which may offset supply to a certain degree.
“The impact on supply chain resulting from a restructure of alliances is yet to be seen.
“These factors do not exist or function independently. They are interactively intertwined, adding to the complexity of the shipping market.”
The report said the dynamics of the situation continue to evolve in 2025.
“Firstly, consensus among the parties one week prior to the deadline has averted the labour strike along the U.S. East Coast and the Gulf.
“Secondly, there are signs of de-escalation for the situation in the Red Sea, where the potential resumption of passage through the Suez Canal will release capacity and lead to the rather normal levels in freight rates.
“Thirdly, the US administration unravels their new policies impacting the global economy and supply chain in the short and long run.
“These impacts may be different, but their effects should not be underestimated. The reshaping of the global supply chain will undoubtedly affect the container shipping market in the long term.
“Although the outlook is full of uncertainties, with the support of the dual-brand strategy, we are well prepared to embrace opportunities and respond to challenges with highly efficient vessel utilisation and excellent cost control, as well as in an innovative, prudent and flexible manner.
“We will consistently fulfil our ‘people, people, people and customer-oriented commitment, and offer high-quality services and reliable products to greenly and intelligently bridge world trade.”
As at 31st December 2024, the Group had cash and bank balances of US$7,903.5 million compared with debt obligations of US$561.6 million repayable in 2025. It recorded a profit of US$2,577.4 million for 2024, compared to a profit of US$1,367.9 million in 2023.
