OOCL expects alliance membership to deliver competitive adva
Time: 2017-04-13 13:44
HONG KONG's Orient Overseas Container Lines (OOCL) is upbeat about the benefits its participation in the four-member Ocean Alliance, expecting it to provide economies of scale and greater efficiencies.
The Ocean Alliance will have 350 ships and 40 loops when it begins operations in April, noted Colchester's Seatrade Maritime News.
While OOCL chief financial officer Alan Tung said consolidation in the form of mergers and acquisitions as well as alliances will continue, he cautioned that while "scale is important, it is not everything".
OOCL said it expects the Ocean Alliance to deliver faster transit times, competitive sailing frequencies, greater port coverage, an attractive selection of frequent departures and direct calls, one of the youngest and most fuel-efficient fleets, and efficient and reliable services.
As a positive for the lines, the reduced number of carriers is also expected to bring less industry fragmentation and better pricing power for all the players.
Citing Alphaliner figures, OOCL showed that it will have the highest share of capacity on the Far East-North America trade and second highest by just a small margin on the Asia-Europe trade. It will also have the highest number of ships in the 10,000 to 18,000 TEU range, only slightly behind the 2M Alliance in the 18,000 to 21,000 TEU segment.
Further figures from SeaIntel show that it has the highest number of fastest transit times per route on both the Far East to US east and west coast as well as Asia-Europe trade lanes. And it also beats the 2M Alliance in terms of the number of port pairs on both the transpacific and Asia-Mediterranean lanes.
The Ocean Alliance will have 350 ships and 40 loops when it begins operations in April, noted Colchester's Seatrade Maritime News.
While OOCL chief financial officer Alan Tung said consolidation in the form of mergers and acquisitions as well as alliances will continue, he cautioned that while "scale is important, it is not everything".
OOCL said it expects the Ocean Alliance to deliver faster transit times, competitive sailing frequencies, greater port coverage, an attractive selection of frequent departures and direct calls, one of the youngest and most fuel-efficient fleets, and efficient and reliable services.
As a positive for the lines, the reduced number of carriers is also expected to bring less industry fragmentation and better pricing power for all the players.
Citing Alphaliner figures, OOCL showed that it will have the highest share of capacity on the Far East-North America trade and second highest by just a small margin on the Asia-Europe trade. It will also have the highest number of ships in the 10,000 to 18,000 TEU range, only slightly behind the 2M Alliance in the 18,000 to 21,000 TEU segment.
Further figures from SeaIntel show that it has the highest number of fastest transit times per route on both the Far East to US east and west coast as well as Asia-Europe trade lanes. And it also beats the 2M Alliance in terms of the number of port pairs on both the transpacific and Asia-Mediterranean lanes.
