OOCL orders 7 more 23,000 TEU boxships in China

Hong Kong-based container shipping and logistics service company Orient Overseas Container Line Limited (OOCL) has ordered a new batch of seven 23,000 TEU containerships at COSCO shipyards in China.

Illustration. Image Courtesy: OOCL

On 30 October 2020, Orient Overseas (International) Limited (OOIL), the parent company of OOCL, entered into shipbuilding contracts with Dalian COSCO KHI Ship Engineering Co., Ltd. (DACKS) and Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS).

As informed, the contracts are valued at HK$ 8.6 billion (about 1.1 billion).

Following the tender process, it was decided that Nantong will construct three of the seven vessels and Dalian the remaining four units.

The boxships are expected to be delivered between the third quarter of 2023 and the third quarter of 2024.

The latest order comes several months after OOCL signed a shipbuilding deal comprising five 23,000 TEU ultra large container vessels (ULCVs). The ship quintet is planned for delivery in 2023 and will be built by the two abovementioned yards.

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The orders are said to be part of the group’s long-term strategic development and growth plan aimed at building and deploying mega-sized vessels in order to enhance OOCL’s cost competitiveness and improve operation efficiency.

Back in 2018, COSCO Shipping Holdings finalized the acquisition of OOCL’s majority stake and now controls more than 50% of the issued share capital of the company, benefitting from synergy effects.