OOCL Looking into More Alliances to Keep Scale

first_imgzoom As yet another tough year unravels for the container shipping industry Hong Kong’s Orient Overseas (International) Limited says it would continue searching for alliance opportunities in the container shipping sector to save costs.Commenting on the company’s full year results for 2015, Chairman of OOIL, Chee Chen Tung said that OOCL has participated in alliances for decades adding that the group “continuously seeks to identify opportunities for additional efficiencies and savings through these arrangements.”“We continue to believe that alliance structures are an important means of achieving scale and enhancing product quality,” Tung noted.The announcement comes as reports emerge on the forming of a new mega alliance among container shipping majors, namely, French CMA CGM and China COSCO, who are said to be targeting Evergreen and OOCL to join the group.According to Alphaliner, OOCL is understood to be reviewing its options after a high-level meeting with CMA CGM and COSCO in late January.The new structure is likely to be formed once the Ocean Three and CKYHE deals expire in 2016 and 2017 respectively.According to Tung, moving ahead, scale will continue to be a key driver of sustainability in the industry.“A key part of how OOCL achieves scale is through having the right fleet, with modern and fuel efficient vessels built to the right size and specifications, driving unit cost efficiency even at today’s lower fuel prices. We are delighted with the better-than-expected efficiency gains achieved through our 13,208 TEU vessels replacing smaller vessels on certain routes, and look forward to enhancing these benefits of scale further with our larger vessels, as they enter into service in 2017,” continued Tung.During 2015, the group took delivery of four SX class 8,888 TEU new vessels from Hudong-Zhonghua Shipbuilding in China and ordered six 20,000 TEU class vessels at Samsung Heavy Industries Co. slated delivery in year 2017.The group reported a profit attributable to equity holders for 2015 of USD 283.9 million, compared to a profit of USD 270.5 million in 2014.“For the full year 2015, OOCL’s liftings were essentially flat, with a drop in revenue, and of revenue per TEU of 10%. This reflects the challenging environment, particularly as the very tough second half took hold,” Tung, remarked.The group expects its Middle Harbor Redevelopment Project in California to enter into the first phase of its operation in 2016.“While the final completion of the project is not scheduled to occur until 2020, we fully anticipate that even from 2016 we will start to reap benefits from this large capital investment,” Tung said.Speaking of 2016, Tung noted that the first quarter has so far been characterised by great uncertainty which is to resume throughout the year amid reduced global economic growth forecast and anticipated entrance of new shipping capacity into the global fleet.last_img read more

CRTC starts hearings on whether highspeed Internet should be declared a right

GATINEAU, Que. — The country’s telecom regulator says there are no guarantees it will enforce minimum Internet speeds and service levels across Canada, even if it comes up with new target levels.The chairman of the Canadian Radio-television and Telecommunications Commission says it will be up to participants in hearings being held in Gatineau to demonstrate why the regulator should act.Jean-Pierre Blais says it’s important for proponents of regulation to show why market forces are not enough to ensure the public’s need for Internet services is being met.U.S. continues with appeal in New York iPhone case two weeks after dropping San Bernardino requestPeople aren’t sharing as much personal content on Facebook and the company is starting to worry: reportBlais made the comments as the regulator began a three-week examination of basic telecommunication services and whether high-speed Internet service should be declared a right.Currently, basic telecommunications services in Canada include individual line, touch-tone phone service, the ability to connect to the Internet at low speeds, access to long distance, directory assistance services, enhanced calling features and privacy protection features, emergency services and voice mail.Blais says if the definition of basic telecom services is to change, it has to be based on facts.“The CRTC must make informed decisions, based on solid evidence, while taking into account the real and reasonable needs of the population,” Blais said in an opening statement to the hearings.“As it is crucial not to confuse ‘wants’ with ‘needs’, the CRTC is asking parties to take a fact-based and objective approach to these discussions,” he said.“It is also important to note that any target speed or service level that, in the course of the hearing, the CRTC finds to be ideal or a good measure of success would not necessarily guarantee regulatory action in this regard.” read more

Family members in US fear the worst for missing Jamaican media

Media worker Derrick Rodgers(Jamaica Observer) DERRICK Rodgers has been missing for two months.Family members, living in Georgia and Massachusetts in the United States, fear that the worst has happened to him. The 60-year-old Lawrence Tavern resident disappeared on October 13.His niece, Natalie Redman, contacted the Jamaica Observer recently saying that the family is on edge.“We reported it to the Constant Spring police, but we were told that the family would have to physically go in and make the report. After that, we contacted the father of the church he used to attend and he was able to go in and make the report. The police say that they have since circulated a missing person report at all their precincts across the island so now we are just waiting,” Redman told the Observer.She said that the family realised that something was amiss when her mother, Rogers’ sister, sent money for him through a financial institution and the money was not collected.“He is always in contact with us. He is never out of touch. My mom always sends him money and he always calls to say thanks. When she sent the money on October 13 he never called. We called and he didn’t answer. We called [financial institution] and they said that the money was not picked up.“Right now, to be honest, we’re on edge. You have to just be bracing yourself right now for the worst. There’s no way something hasn’t happened to him. [Getting] No response from him has us worried,” Redman said.She told the Observer that her uncle worked in media and was a former employee of Television Jamaica, Best FM, and Kool 97 FM.Redman said that the family has been circulating photographs of her uncle on social media but has received no feedback.“We don’t have a physical presence in the island to do any rigid follow-ups. No one has seen or heard from him. They are only saying that they know he lives at Top Hill and that’s in Lawrence Tavern,” the woman said.Efforts made by the Observer to get a comment from the Constant Spring Police Station were not successful.On December 10, Crime Stop Jamaica put out an alert for Rodgers, citing that he was last seen alive, according to a report from the Lawrence Tavern police, in his community.Rodgers is of dark complexion, medium build, and is about 167 centimetres (5 feet 6 inches) tall. His mode of dress at the time he went missing is unknown.“We are anxious. We are waiting, but we are worried. We are doing all that we can to find out what has happened to my uncle. It is unusual that he wouldn’t contact us for so long,” said Redman.Anyone knowing Rodgers’ whereabouts is being asked to contact the Constant Spring Police at 876- 924-1421-2 Police 119 emergency number or Crime Stop at 311. Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedCaribbean News Round-upOctober 15, 2015In “Regional”Caribbean News Round-upNovember 17, 2015In “Regional”Caribbean News Round-upNovember 11, 2015In “Regional” read more