Rumors of OOCL Sale Intensify

Shares in Orient Overseas International have increased by over 20 percent since the beginning of the year. Shipping analyst Alphaliner says that China’ COSCO and Taiwan’s Evergreen are possible buyers of OOCL.

OOCL is ranked as the fourth largest container carrier in Asia in terms of tonnage, following COSCO, Evergreen and Yang Ming Marine Transport, and as the ninth largest container carrier worldwide.

Analyst Dynamar notes that for the first time the 25 largest container ship operators collectively posted a net loss in 2015.

Consolidations actualized or initiated in 2016 saw six of the original top 20 lines go:
• China Shipping merged into Coscon (February)
• Acquisition of APL by CMA CGM (June)
• Hanjin going under (September)
• Merger-to-be of UASC into Hapag-Lloyd (1Q 2017)
• The proposed joint venture between “K” Line, MOL and NYK (September 2017)
• Maersk Line’s intended acquisition of Hamburg Süd (late 2017)

In the course of all the above sweeping, powerful changes, smaller liner companies come under great pressure to consider consolidation, says Dynamar.