OOCL to Operate Solo Under COSCO

Twitter
Facebook
LinkedIn
Email
OOCL_ship_02_08_1280_800_84_s_c1

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%.

Read more about China's wider maritime policies with a Port Technology technical paper

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.”

Read more:

Daily Email Newsletter

Sign up to our daily email newsletter to receive the latest news from Port Technology International.
FREE

Supplier Directory

Find out how to get listed

Webinar Series

Find out how to attend

Latest Stories

PIL

PIL appoints new CEO

The Board of Directors of Pacific International Lines (PIL) has appointed Lars Kastrup as CEO

Cookie Policy. This website uses cookies to ensure you get the best experience on our website.