Drewry lists OOIL as most financially sound ocean freight company
Orient Overseas International Ltd (OOIL), the parent company of OOCL, has been listed as the most financially sound ocean freight company in a new report by Drewry Shipping Consultants published in January 2010.
Drewry launched the freight operators’ Z-score financial stress index as part of its new monthly market research report for shippers, Freight Shipper Insight. The Z-score Index was compiled by Drewry to provide a quick reference for shippers who are increasingly concerned by the financial fitness of their service providers.
The Z-score methodology was developed by US academic Edward Altman in the 1960s to predict the likelihood of a company’s failure in the next two years, based solely on data from financial reports. The Z-score ratings are objective calculations and do not necessarily reflect Drewry’s opinion regarding the prospects of the companies
Well known and respected by practitioners and academics, this score uses statistical techniques to predict a company’s probability of failure in the next two years, using data from a company’s financial statements. A Z-score below 1.8 indicates a higher risk of the company going bankrupt (“distress zone”) based on these financial figures only.
In the Drewry report, only two ocean freight related companies had Z-scores above the distress zone, with OOIL having the highest score.
Please visit http://www.drewry.co.uk/ for more information.
Source: Drewry Freight Shipper Insight from company reports. Jan 2010 |
N
otes:
1) Lack of available data for some carriers e.g. MSC, Hapag-Lloyd and Hamburg Sud
2) Period covered *=3Q 2009, ** = 1H 2009, *** = full year 2008
