Orient Overseas Container Line (OOCL) has taken delivery of another new mega containership, OOCL Zeebrugge, the fifth eco-friendly 24 188-TEU vessel in a series of 12.
The company’s chief operating officer Kenny Ye believes the company’s interim results reflect the robustness of OOCL's business operations through changing markets.
“Looking ahead, this series of new mega vessels will continue to bring economies of scale to us while incorporating the latest technological and green features.”
The announcement comes amid concerns in the market about overcapacity and lagging demand, which are likely to threaten long-term ocean freight rates.
Market analyst at freight rate platform Xeneta, Emily Stausbøll, has warned that market indications show there will be little respite on the horizon for carriers.
According to the latest data from Xeneta’s Shipping Index (XSI), freight rates have fallen 9.5% since June, adding to the collapse that began last year.
Quoted in Riviera News, she said global long-term shipping rates had sunk to a two-year low in July, while long-term contract rates had lost 57.8% of their value since the same period in 2022.
The average shipper on the main trades should be paying less than half the rates they were a year ago on the long-term market, she added. Despite an increase in volumes from previous months, global container demand remains down year-on-year.
“Even if volumes do increase, irrespective of demand, overcapacity is now inevitable, with a record number of ships being delivered this year,” she added.
Xeneta said that June had seen the highest-ever monthly deliveries of new ships, with more than 300 000 TEUs of capacity from 40 new ships added to the market. In the first six months of the year, 990 000 TEUs were delivered, with around the same to come in the second half of 2023.
