ONE Q1 profit soars 3,000% on 2019, thanks to cheaper fuel and higher rates

Japanese carrier Ocean Network Express (ONE) has kicked off the quarterly financial results reporting season with a $167m net profit for April-June.

Despite seeing liftings slump by about 20% on its Q1 of last year, to 2.67m teu, the merged carrier’s revenue declined by just 4.8% to $2.74bn, as freight rates spiked in response to tight capacity on the major east-west tradelanes.

Additionally boosted by a 20% fall in the price of bunkers, to $348 per ton, and surcharges levied on shippers for low-sulphur fuel, ONE’s profit for the quarter soared by more than 3,000% over the $5m for the same quarter of 2019.

As suggested by OOCL’s operating performance update last week, the aggressive blanking strategies of the major container lines to mitigate the demand reduction impact of Covid 19 during the quarter has vastly improved the prospects of carrier profitability.

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Source: The Load Star

Hapag-Lloyd latest carrier to offer service with no rollover promises

Hapag-Lloyd is the latest carrier to announce a shipment guarantee premium product, which it claims will “increase supply chain efficiency” for customers.

Loaded as Booked is the fourth part of the carrier’s rollout of 10 quality promises through to the end of next year.

Hapag-Lloyd said subscribing would mean a promise to load 95% of a customer’s confirmed bookings “on the exact ship specified” in the booking confirmation.

“Missed loadings have always been an issue for customers because they cause inefficiencies across their entire supply chain,” said Juan Carlos Duk, managing director global commercial development at Hapag-Lloyd.

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Source: The Load Star

Maersk to charge fee starting in September for shippers manually booking, amending documents

Dive Brief:

  • Maersk will charge a fee to shippers who handle booking or documentation amendments manually (through email, fax, phone or chat) beginning Sept. 1 for the United States and Canada, the carrier told customers in an advisory last week, according to a copy provided to Supply Chain Dive.
  • A Manual Booking Amendment Fee of $50 will apply for every amendment to a booking Maersk receives through a manual channel, and the Manual Documentation Amendment fee of $75 will apply to every amendment to the Bill of Lading Maersk receives through a manual channel, according to details provided by Maersk.
  • “The intention is not to use the fee as a revenue generator but rather to change customer behavior and use which in turn will improve and simplify their experience with 24/7 service,” according to the carrier, which said it receives about 6,000 emails and phone calls every week “from a significant number of shippers” related to manual amendments.

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Source: Supply Chain Dive

OOCL second-quarter revenues up, volumes down

Orient Overseas Container Line (OOCL) said that although second-quarter volumes were down 4.6% year-over-year, total revenues increased 1.1%.

OOCL’s parent company, Orient Overseas (International) Ltd. (OOIL), covered the second quarter of 2020 in a one-paragraph overview dated Friday.

According to the release, second-quarter revenues totaled $1.58 million. Average revenue per twenty-foot equivalent unit (TEU) increased 5.9% compared to the same period last year.

OOCL said loadable capacity decreased by 6.4% year-over-year. The overall load factor was 1.6% higher than the same period in 2019.

OOCL typically provides little or no commentary in its earnings releases. Its second-quarter release was no different.

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Source: American Shipper

Hapag-Lloyd promising cargo loaded as booked

“Your cargo has been rolled.”

Not only does that statement elicit groans from customers, it causes delayed cargo, more administrative work and often additional commercial costs.

“With our newly launched loaded as booked quality promise, we spare our customers these headaches and inconveniences by promising to load more than 95% of their confirmed bookings on the exact ship specified in the reference or first booking confirmation,” Hapag-Lloyd announced Thursday.

Juan Carlos Duk, Hapag-Lloyd’s managing director of global commercial development, said the German container shipping line promises to “significantly lower the number of rolls and make the lives of our customers a lot easier by improving their supply chain flow, boosting their planning security and reducing administrative work related to rolled cargo. As a result, in addition to saving time that they can devote to other important tasks, our customers will save money thanks to reduced commercial costs and liabilities.”

Hapag-Lloyd said it set the goal to “differentiate through quality” with its Strategy 2023, which includes initiatives focused on network optimization, terminal partnering and procurement improvement.

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Source: American Shipper