OOCL names final energy-efficient 24,188 TEU mega ship

Hong Kong-based container shipping company Orient Overseas Container Line (OOCL) has named its twelfth new 24,188 TEU eco-friendly containership, the OOCL Portugal.

The ceremony was held at Nantong COSCO KHI Ship Engineering (NACKS) shipyard on August 26, 2024.

“The naming of our last 24,188 TEU new vessel marks an important milestone in the development of OOCL. The delivery of this series of mega vessels not only optimized the operational safety of vessels, but also provided us with the advantages of energy efficiency and economies of scale, allowing OOCL to provide better and greener services to enhance our competitiveness in face of future challenges,” Michael Xu, Director and Member of Executive Committee of OOCL, commented.

In the first half of 2024, the company took delivery of the seventh to eleventh 24,188 TEU newbuild vessels from NACKS and Dalian COSCO KHI Ship Engineering (DACKS) respectively. The two vessels delivered from NACKS are named OOCL Valencia and OOCL Sweden; and the three vessels delivered from DACKS are named OOCL Abu Dhabi, OOCL Finland and OOCL Denmark.

Last week, the container shipping company published its financial results for the first half of 2024 showing that a group revenue rose to $4.64 billion from $4.54 billion seen in the corresponding period last year. EBITDA stood at $1.27 billion in H1 2024, compared to $1.56 billion reported in H1 2023.

As explained, the ongoing situation in the Red Sea that has caused supply chain disruptions poses a challenge for the container shipping industry. In order to maintain schedule reliability, the additional distance to circumnavigate through the Cape of Good Hope instead of going through the Red Sea meant that liners had to deploy additional capacity.

“Looking ahead, although rates are still relatively high at the moment, uncertainty remains the norm.  How long will such demand dynamic be maintained can be one of the key factors that significantly influence the market’s short and long-term expectations, economic trends and trade patterns can also impact the market to various extents.  On the other hand, lessons from the pandemic and Red Sea incident have taught us that the supply chains are very susceptible to geopolitical risks,” OOCL said.

“As new ships continue to be delivered, capacity remains a key concern for the market, and the situation of the Red Sea will continue to be a dominant factor on it.  Other regional factors shouldn’t be ignored also, such as the US East Coast labour discussions as how it develops may affect the entire supply chain.”