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Robert.Jervis_43227 Mar 11

OOCL orders five 23,000 TEU container vessels

OOCL orders five 23,000 TEU container vessels image
Strategic plan for further growth – and to reduce Carbon emissions
OOCL has announced that it has signed newbuilding contracts with shipyards Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS) and Dalian COSCO KHI Ship Engineering Co. Ltd. (DACKS) for five new container vessels, each at a cost of $155.68 million with a nominal capacity of 23,000 TEU, and it expects to begin taking delivery of these vessels in the year 2023.

These five new buildings are part of its ongoing program to introduce large, modern, and fuel-efficient vessels to further strengthen its fleet competitiveness as well as fleet rebalancing by increasing the proportion of the ships it owns in the core fleet while a number of vessels leased under long-term charters will be returned to the owners.  

Today, OOCL only has six G-Class mega-vessels, each with a capacity of approximately 21,000 TEU. These vessels were ordered in March 2015, as the first step in OOCL’s expansion into this class of mega vessels for the Asia-Europe trade. The original plan at that time was to have ordered a second batch of five to six mega vessels.  However, this addition to the original order has never happened thus far, first because of the terrible market conditions of 2016, and then throughout 2017-2018 with focus being on the execution of the sale of the OOIL group to COSCO SHIPPING Holdings.

The announcement for this new order for 23,000 TEU vessels is indeed this long-awaited second step, and is consistent with the strategic plan for further growth. OOCL will have the potential to independently form a complete loop in the Asia-Europe trade where it intends to deploy them in order to strengthen OOCL’s overall competitive position in the market and improve services to customers.  Balancing this expansion, over the next five years it plans to return or dispose of 13 vessels from our fleet, a total of around 76,000 TEU, after successful long-term service in the group.

Furthermore, these new vessels will help bring economies of scale to OOCL’s unit cost structure and enable the company to continue to play an influential role in offering more competitive and best-in-class services to customers. The ships have the latest engine technology and other state-of-the-art equipment and will be used to achieve greater operational efficiency and reduce carbon emissions, which is consistently in line with OOCL’s work and commitment to corporate sustainability and environmental protection