Orient Overseas Container Line (OOCL) will continue to operate independently, despite being taken over by Chinese state-owned container line COSCO.
COSCO’s purchase of OOIL, which has helped make it the third biggest container line in the world, was given final approval by US Homeland Security in July, 2018.
The company has tripled its market share in three years, and in that time has overtaken CMA-CGM, Hapag-Lloyd and Evergreen.
In addition to this, it has also increased its TEU capacity by 68%.
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In a Q&A on its website, COSCO said Hong Kong-based OOCL will work together under a dual-brand strategy to improve logistics and improve efficiency.
It also insisted there will be no changes to schedules, routes or current networks, and that all OOCL’s ongoing contracts will be honoured.
It said: “Upon closing of the transaction, COSCO SHIPPING Holdings [sic] will hold the two liner companies simultaneously. The two liner companies will maintain existing operational models and management channels.
“COSCO SHIPPING Lines and OOCL will continue operating independently under the dual-brand strategy and seeking for synergy.
“The sales and customer service systems will remain unchanged to ensure service consistency.
“Meanwhile, back office functions such as cost control will be optimized step by step to improve operational efficiency and level of services.
“Both liners will continue to honour all ongoing promises and contracts. All signed contracts will remain in force to ensure the continuity of customer service.
“In the future, the two companies will face their customers with their own teams to carry out promotion and sales work with their respective products and services, sales channels and sales policies, and sign contracts with customers respectively.”
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COSCO has tripled its market share in three years following its takevoer of OOCL