Orient Overseas (International) Ltd (OOIL), the listed entity of Hong Kong container line OOCL, has conceded that October’s likely introduction of extra port fees for Chinese-linked tonnage could be painful.
OOCL, owned by China’s COSCO, posted its interims yesterday in which it noted in a release that the potential extra port charges levied by the US on Chinese carriers will have a “relatively large impact”.
In April, the US Trade Representative detailed plans to start charging China-linked tonnage calling at US ports from the middle of October this year, in a bid to both curb China’s dominance in the field of shipbuilding as well as boost domestic shipyard capabilities.
Both OOCL and parent COSCO, part of the Ocean Alliance, have already started taking action – launching transpacific services, for instance, that avoid the US and make for Mexico instead.
OOIL did add that ongoing disruption could actually help boost its bottom line.
“[A]s global trade patterns shift to becoming more regional, market divergence may occur, or there may be delayed or deferred responses due to extended or restructured supply chains, all of which may be potentially creating opportunities for shipping companies to refine their strategies in segmented markets,” OOIL stated, adding: “Geopolitical uncertainties still significantly influence the shipping market. If the situation in the Red Sea was a defining factor which contributed to the strong performance of the container shipping market in 2024, then the ongoing changes in tariff policies and trade disputes have undoubtedly played a decisive role in shaping market trends in the first half of 2025.”
OOIL posted stronger interim earnings yesterday. Revenue for the first half of 2025 came in at $4.88bn, up 5% from the same period in 2024, while profit attributable to equity holders rose nearly 15% to $954m.