‘Scale will continue to be a key driver of sustainability in the industry’: CC Tung
Orient Overseas (International) Limited, the Hong Kong-listed parent of containerline, OOCL, managed to increase net profit in 2015 by $13.4m to $283.9m, despite revenues and load factors sliding. Chairman CC Tung commented: “Scale will continue to be a key driver of sustainability in the industry. A key part of how OOCL achieves scale is through having the right fleet, with modern and fuel efficient vessels built to the right size and specifications, driving unit cost efficiency even at today’s lower fuel prices.”
On alliances, in which OOCL has been linked with a change to a new partnership with CMA CGM, Evergreen and China Cosco Shipping, Tung said: “OOCL has participated in alliances, in one form or another, for decades. We continue to believe that alliance structures are an important means of achieving scale and enhancing product quality. OOCL continuously seeks to identify opportunities for additional efficiencies and savings through these arrangements.”
In terms of business so far this year, Tung said the first quarter has so far been characterised by “great uncertainty”.