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Orient Overseas Container Line (OOCL) will continue to operate independently upon closing of the US$6.3bn acquisition by COSCO Shipping, which will make the Chinese carrier the world’s third largest shipping line.
An online Q&A posted on COSCO’s website pointed out that the pair of carriers will maintain existing operational models and management channels while operating independently under the dual-brand strategy and seeking for synergy.
Regarding pricing, it noted: “Based on adequate daily communications, both liners will make their own decisions on freight rates independently based on their own business strategy/policy and characteristics of their respective service products, and maintain their own pricing and approval systems respectively.”
The slot allocation model will remain unchanged in the future, implementing existing channels and processes.
Both companies will be responsible for their own slot allocation, and will attempt to increase utilisation through an interchange mechanism to provide better slot guarantee to customers.
The sales and customer service systems will remain unchanged to ensure service consistency, it added.
Meanwhile, back office functions such as cost control will be optimised step by step to improve operational efficiency and service levels.
No changes will occur to the ports of calling, schedules and slots arrangement due to the transaction.
The statement added: “In accordance with customer needs, OOCL will consider deepening the cooperation with COSCO Shipping Lines to provide a wider variety of choices for customers.”
The two companies will continue to use their own container fleets with no changes to the appearance.
According to COSCO, the pick-up and use of containers will be easier for customers through measures including centralised procurement and interchanging use of containers.
The container fleet of the two liners will become more abundant, and this will better safeguard customers’ use of container supply, it added.
No switching or consolidation of information systems will be involved as the two companies will continue to use their respective information systems.
OOCL will not consider replacing shipping agencies for the time being.