OOCL introduces the OOCL Scandinavia

In OOCL’s series of six ‘G Class’ containerships on order at the Samsung Heavy Industry (SHI) shipyard, we are pleased to introduce the newest and fifth 21,413 TEU containership, named the OOCL Scandinavia, into our fleet of world trade ambassadors.

The OOCL Scandinavia will be joining her sister vessels on our LL1 service, linking major markets in China and Northern Europe together.

The OOCL Scandinavia unveiled at the christening ceremony held at the SHI shipyard

In commemoration of this milestone at OOCL, we are very honored that Mr. Yue Yi, Vice Chairman, Executive Director and Chief Executive of the Bank of China (Hong Kong) Ltd, was able to join us as our Guest of Honor and witness the christening of the vessel.

The Bank of China is one of the finest and most respected international financial institutions in the industry and their support to OOCL has been tremendous, allowing us to be the best that we can be in providing quality transportation and logistics services around the world, but particularly in China, where OOCL launched and pioneered the reefer-on-rail services from Xian to Qingdao in 1998, the first of its kind in the country.

In 1998, OOCL introduced the first reefer-on-rail services in China

As an active industry player in this vibrant market, facilitating trade and exploring new opportunities, OOCL was front and center in witnessing China’s remarkable growth momentum to become one of the world’s most influential economies today. China is moving towards its next ambitious phase of development by working more closely with its trading partners to realize the One Belt One Road initiative in promoting trade and commerce. In his remarks at the ceremonial event, Mr. C. C. Tung, Chairman of Orient Overseas (International) Ltd., commented on the importance of this initiative and also thanked the Bank of China for their support over the years.

“The One Belt One Road initiative comes at a very important time in the shipping industry where leadership and policy directions to stimulate demand growth is needed most,” said Mr. Tung. “We are in a very capital intensive business, and like the Belt and Road initiative, we cannot do it alone. That is why we are very thankful to have our close business partners by our side in our journey, and we look forward to further deepen our working relationship with the Bank of China in the years ahead.”

Mr. Tung also thanked SHI for their dedication and support to OOCL over the years to consistently build vessels of the highest quality that greatly strengthened the competitiveness of OOCL’s fleet and capability to deliver reliable and efficient services to customers.

“The incredible work that has gone into the construction of this massive containership before us is the perfect embodiment of what teamwork means and how business collaboration can achieve wonders,” said Mr. Tung. “This achievement is about working to bring people and companies of different professions and nationalities together to reach new heights, innovate, solve complicated engineering problems, and along the way, why not break a world record too!”

The OOCL Scandinavia will be joining her sister vessels the OOCL Hong Kong, OOCL Germany, OOCL Japan and OOCL United Kingdom in serving the Asia-Europe trade lane on the LL1 service and her port rotation is:

Shanghai / Ningbo / Xiamen / Yantian / Singapore / via Suez Canal / Felixstowe / Rotterdam / Gdansk / Wilhelmshaven / Felixstowe / via Suez Canal / Singapore / Yantian / Shanghai in a 77-day round trip.


Source: Orient Overseas Container Line

OOCL Japan named, sister vessel OOCL Hong Kong achieved a Guinness World Records Title

OOCL announced that Hull number H2174, the third in their line of six 21 thousand TEU class containerships, has been named as the OOCL Japan at the Samsung Heavy Industries shipyard.

Among industry friends, colleagues and business partners at the naming event, Mr. Andy Tung, Chief Executive Officer of OOCL, thanked all those who contributed to the success of the OOCL Japan, particularly the shipyard for all their support in their contribution to OOCL’s fleet of 21,413 TEU vessels.

“Samsung Heavy Industries is one of leading shipbuilders in the world, and we have always valued their level of commitment to quality and the versatility to tackle on new challenges, just as we are doing now to build these incredible 21 thousand TEU class vessels, the largest containerships in the world to date,” said Mr. Tung.

In fact, this would be the second time that OOCL is breaking records. The last time OOCL set a Guinness World Records title was for the largest containership back in April 2003 with the OOCL Shenzhen, an 8,063 TEU vessel.

“Once again, we are very delighted to be setting yet another record with our long-time business partner because earlier this week, we have been confirmed by the Guinness World Records that the OOCL Hong Kong has officially been recorded as the world’s biggest containership by carry capacity at 21,413 TEU.”

The OOCL Japan will be serving the Asia-Europe trade lane on the LL1 service and her port rotation is: Shanghai / Ningbo / Xiamen / Yantian / Singapore / via Suez Canal / Felixstowe / Rotterdam / Gdansk / Wilhelmshaven / Felixstowe / via Suez Canal / Singapore / Yantian / Shanghai in a 77-day round trip.

OOCL is pleased to say that our network operations with our alliance partners are continuing as planned and the new products, including the LL1 service, that were launched in April are settling in well.

Commenting on the timing of the deployment of our 21,413 TEU vessels this year, Mr Tung said: “The economic growth fundamentals continue to show further improvement so far this year, and under the new industry landscape, we are seeing signs of a stronger rebound after witnessing significant volume growth, increased liftings, and more sustainable rate levels that are positively impacting revenues in the first half of 2017. We are pleased to be rolling out these new vessels under the current environment, and look forward to solid demand growth on a much stronger trajectory.”
Source: OOCL

COSCO Shipping, Orient Overseas shares leap after lofty $6.3 billion bid

Container ship Cosco Development, registered and sailing under the flag of Hong Kong, is seen near from Panama City on May 2, 2017.

COSCO Shipping‘s and Hong Kong‘s Orient Overseas International‘s (OOIL) shares leapt on Monday after the Chinese shipping giant made a $6.3 billion offer for its smaller rival on Sunday.

Analysts said the pricing of the deal, at a 31.1 percent premium to OOIL’s previous close, was high given the global container shipping industry is only just beginning to emerge from a prolonged slump and underlined COSCO’s global ambitions.

OOIL shares on Monday rose over 20 percent on Monday morning, while COSCO’s Hong Kong-listed shares were up to their highest level in almost two years.

Should the deal go through, COSCO Shipping will become the world’s third-largest container shipping line after Denmark’s Maersk Line and Switzerland’s Mediterranean Shipping Company (MSC).

“This is an expensive acquisition to become the third largest global container line,” Jefferies analyst Andrew Lee said in a note.

Beijing has been outspoken over its desire to strengthen its hold over global shipping, which dovetails with the country’s Belt and Road political initiative that aims to expand and exert control over supply chains from Asia to Europe.

COSCO Shipping is a product of a state-driven merger between China Ocean Shipping (Group) Company and China Shipping Group, previously ranked sixth and seventh largest respectively in terms of the world’s largest container shipping fleets.

The deal would see Beijing take a firmer grip of Hong Kong’s transport hub, even as the city’s once world-leading port loses ground to rival ports on the mainland.

World’s largest container ship OOCL Hong Kong makes maiden call at Port of Felixstowe

The world’s largest container ship, the 21,413 TEU OOCL Hong Kong, has made its maiden call at Hutchison Ports’ Port of Felixstowe. The call represented a double celebration as it also marked the return of OOCL to the UK’s largest container port after a 17 year absence.

Commenting on the two events, Clemence Cheng, CEO of the Port of Felixstowe and Managing Director of Hutchison Ports Europe, said: “The OOCL Hong Kong is the latest in a line of mega vessels to call at the Port of Felixstowe. The port’s location close to the main shipping lanes and the ports of Northern Europe, combined with a unique combination of road and rail connections, makes it the first choice for the latest generation of giant container ships.

“Our relationship with OOCL goes back 40 years and we are delighted to welcome them back to the Port of Felixstowe as part of the Ocean Alliance. We are honoured to have been chosen as the main UK hub for the Ocean Alliance and look forward to continuing to work with OOCL and the other alliance partners to provide the best possible service to UK importers and exporters.”

Richard Hew, Managing Director of OOCL, added: “We are very delighted by the warm welcome that the OOCL Hong Kong received from the Port of Felixstowe community. We truly look forward to working more closely with our customers, business partners and with the port community in developing our synergies for growth.”

The 210,890 gt vessel was built at Samsung Heavy Industries’ (SHI) shipyard in Geoje, South Korea. Measuring 400m-long and 58.8m-wide, the OOCL Hong Kong serves the Asia-Europe trade lane as part of OOCL’s LL1 service. The Ocean Alliance consists of OOCL, CMA CGM, Cosco Shipping and Evergreen Line.
Source: Port of Felixstowe

OOCL TAKEOVER BID?

Marketplace rumours are circulating that one of the world’s largest containerlines could be eyeing a potential takeover bid for Hong Kong-based Orient Overseas Container Line (OOCL).

Currently ranked eighth in the world in regards to capacity at 571,183 TEU according to Alphaliner, the carrier’s shares have been observed to undergo a significant recent surge on the Hong Kong stock market amidst the speculation.

It has been noted that the gap is “widening” between the largest carriers — AP Moller-Maersk at 3.28 million TEU, Mediterranean Shipping Company at 2.84 million TEU, CMA CGM at 2.13 million TEU and COSCo at 1.64 million TEU — and the rest of the marketplace.

Furthermore, Transport Intelligence observes carriers such as OOCL — which is actually slightly smaller than the about-to-be acquired Hamburg Süd — are becoming increasingly “vulnerable” as the larger carriers continue to grow through acquisition.

“Such consolidation cannot be anything other than a challenge for the likes of OOCL,” it states.

“Although it has a better record of profitability than many others, for the first half of 2016 the company experienced a loss, mitigated by the revaluation of assets.

“Creating a new company that will be successful in today’s market is not easy. Yet should the Tung family, that holds a controlling stake in OOCL, wish to initiate some sort of process either of merger, purchase or sale, there probably would be no shortage of targets in the vicinity of the South China Sea.”