OOCL alliance to be biggest shipping venture
Orient Overseas Container Line (OOCL) has formed a strategic alliance with four other shipping firms to create the world's biggest co-operative shipping venture.
OOCL, owned by Chief Executive Tung Chee-hwa's family, said it had linked with Hapag Lloyd of the Netherlands, Malaysia International Shipping Corp (MISC), Japan's NYK Line and Britain's P&O Nedlloyd. All five firms are among the world's top 10 container shipping operators.
An OOCL spokesman said the new group was so far unnamed, but would use more than 100 deep-sea container ships to serve the main East-West trade markets, including container ports in Asia, Europe and North America.
'We will have a balanced fleet deployment in the major trades in world container shipping,' an OOCL spokesman said.
'This will create an exceptionally strong product to meet our customers' needs, both for the present and in the future, as well as generating further efficiencies.
'We definitely see enhancements and improvements to services. It is a very positive step.' OOCL has been seeking alternative shipping partners following a surge of mergers and takeovers among rival companies, including Neptune Orient and American President Lines earlier this year. This has left the two main co-operative organisations - the Global and Grand alliances - in shreds.
'Both OOCL and MISC were members of the Global Alliance. Hapag Lloyd, NYK and P&O Nedlloyd were part of the Grand Alliance,' the spokesman said.
'We have been searching for an improved structure to move forward. This new alliance is a reflection of that.' Shipping companies have come under increasing pressure to form co-operative consortiums in an effort to boost services customers in the face of falling freight rates and increasing competition.
OOCL said the new agreement would offer the widest choice to customers in the Asia-Europe service and a comprehensive and competitive service in the Asia/North America trade.
The new services are expected to start by next March.
Under the agreement, the Asia-Europe service will comprise six loops, each employing eight vessels and including a fast direct service to China, Taiwan, South Korea and Japan.
There will be five weekly sailings to Northern Europe and one weekly sailing to the Mediterranean. The Asia-North American service will comprise seven loops, one via the Suez Canal, one via the Panama Canal and five West Coast services.
