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Orient Overseas Container Line (OOCL) is alternating control of its three operating divisions among top management, from October 1.

 OOCL managing director (Europe) Jim Poon has announced he will return to Hong Kong as managing director of OOCL (Asia-Pacific).

 He will be replaced in London by C.L. Ting, while Philip Chow becomes president of OOCL (USA) Inc. Mr Ting previously was in charge in the US, while Mr Chow headed the Hong Kong operation.

 Other changes include relocation of Orient Overseas (International) general manager for corporate affairs Stanley Shen to the US as OOCL director of strategic commodities.

 An OOCL spokesman said all companies changed management around from time to time.

 Regarding the company's development plans, Mr Poon said OOCL had ordered four 5,500-teu (20 ft equivalent units) ships for delivery in the first half of 2000.

 The company has ordered two of the ships from Taiwan's China Shipbuilding Corp. Another two are being built by Samsung Heavy Industries in South Korea for another company, and OOCL will lease the vessels when completed. He did not specify the price of the orders.

 The ships would join the Grand Alliance shipping schedules between Asia and Europe, giving the consortium of lines 12 ships of about the same size, he said.

 The alliance had allowed OOCL savings of US$5 million to $8 million from the ability to swap containers, Mr Poon said, and continued to provide other potential cost benefits.

 He estimated further cost reductions could be made among alliance members on land-side operations, which account for up to 30 per cent of operating expenses.

 Mr Poon said a fourth-quarter revival in Europe-Asia rates would help the company improve second-half results.

 Mr Poon said rising rates on the Europe-Asia trade should give the company a better second-half performance, after a net loss of $14.8 million in the first half.

 'We see a better second half and hope for an overall profit for the year,' Mr Poon said.

 'In the past quarter there should be a mini-boom for Asia inbound because manufacturers need raw materials for their exports,' he said.

 Container lines have been hard hit by a trade imbalance on the Asia-Europe route where ships are full of Asian exports heading for Europe, but eastbound rates have crashed as imports to Asia have slumped.

 Shippers are complaining about a lack of space from Asia, Mr Poon said, which would allow the lines to implement westbound rate increases proposed for October.

 Eastbound rates would be more difficult to lift, but he said an upward trend already was appearing for eastbound cargo volumes. He saw conditions improving greatly both next year and in 2000, and was confident the Asian and Russian crises would not have a prolonged effect.

 'There are signs that trade growth may be outpacing tonnage growth in 1998. In addition, the tonnage balance is forecast to further improve for 1999,' he said.

BETTER TIMES Second-half results expected to show improvement Mini-boom forecast in raw materials imports into Asia 



OOCL swaps roles of executives