Hong Kong: Speaking exclusively to Maritime CEO from his Hong Kong headquarters, Andy Tung has outlined the challenges facing the container industry in 2013.
The ceo of Orient Overseas Container Line (OOCL) used the Maritime CEO platform to tell fellow owners to adjust deployment to meet customer demand without under-utilizing capacity this year or else the brittle sector would be mired in more red ink.
Not that red ink is something OOCL has suffered from. It stands out from most of its peers in this regard.
“It is critical,” Tung said, “that apart from the need for effective cost controlling measures on the individual carrier level, discipline in capacity deployment and the ability to hold on to sustainable freight rates will also be essential on the industry-wide level to help rebuild a more stable and healthier business environment for all.”
Last year Andy Tung stepped up from chief operating officer to ceo at OOCL. He is the eldest son of CH Tung, the former chairman of the group who became Hong Kong’s first leader after the territory was reunified with China in 1997.
The liner head said that “lingering overcapacity” would continue “to haunt the industry well into 2013”, and as a result many carriers “will anticipate huge challenges in adjusting their product structures and optimising slot utilization”.
NEED TO KNOW: OOCL
Orient Overseas Container Line is Hong Kong’s largest shipping line. Tracing its roots to 1947, OOCL is now entering a new generation at the helm, with Andy Tung installed as ceo last year, the third generation of the Tung family to steer the firm. OOCL moved 5.22m teu last year, up 3.7% from 2011. Revenues grew 6.7% to $5.9bn. Alphaliner ranks OOCL as the 11th largest liner in the world.