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OOCL lifts capacity on east-west routes

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Orient Overseas Container Line will deploy six 5,500-teu (20 ft equivalent unit) vessels on order from Taiwan and South Korea on either the key east-west trades between Asia and Europe, or Asia and the United States.

OOCL (Asia-Pacific) managing director Jim Poon said the route would be decided jointly after talks with Grand Alliance partners.

The alliance groups OOCL, Hapag-Lloyd, Malaysia International Shipping Corp, NYK Line and P&O Nedlloyd.

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OOCL expected to benefit this year as early alliance problems had been solved last year, he said.

Mr Poon said annual slot capacity would rise to two million teu by the end of next year, up from 1.6 million teu this year, with the latest multi-year charter deal for two 5,500-teu vessels from Nord Capital. Last year, OOCL made a similar deal with Nord Capital involving two similar ships - costing about US$60 million each.

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When the four newbuildings in Korea are delivered later this year and next year, OOCL will sell four older and smaller vessels. The two vessels on order from Taiwan's China Ship Building Corp will be owned by OOCL.

Unlike other carriers which have reduced services in the declining intra-Asia trade, OOCL has expanded.

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