UpdateHong Kong's Orient Overseas Container Line expansion signals plan to stay relevant

The latest US$951.6 million  fleet expansion by Orient Overseas Container Line  underscores the Hong Kong shipping lines’ intention to stay relevant  in the world’s most competitive trade lanes, with a  strategy to focus on organic growth.

OOCL yesterday announced it had ordered six  container ships with a capacity of 20,000 20-foot  equivalent units (teu),  the world’s biggest, ending year-long speculation in the maritime press that OOCL, a conservative player, would join the big ship owner club, lured by the economy of scale the vessels offer.

Ships of similar size are generally  400 metres long, roughly the  height of  Hong Kong’s International Finance Centre Two tower.

Their size means they can only be accepted by ports along the Asia-Europe trade lanes, the world’s busiest.

“This order clearly illustrates that OOCL intends to remain relevant in the container shipping markets.  They need to have the most efficient ships in order to compete effectively with  other carriers,” said Tan Hua Joo,  an analyst at Alphaliner,  a container shipping consultancy.

OOCL, together with its partners in the operational alliance known as G6, must play catch up with  rival alliances  2M, Ocean Three and CKYHE, all of whom have invested in vessels  that are 18,000 teu or larger over the past two years. The trend was initiated by Danish Maersk Line’s US$3.8 billion splurge on 20 ships known as the “Triple-E” class.