OOCL – How to make a profit in difficult times.
November 22, 2012 Leave a comment
I am completing a feature on the liner company OOCL. This will appear in a forthcoming edition of Containerisation International. The company is a fascinating subject, being near collapse in the 80’s before it re-emerged under the control of the Tung family in the 90’s. Rapid expansion into non-core businesses and a large orderbook saw debts reach around $2.5bn. It could have gone under, but banks and other backers rallied around to support the company through a long and painful restructuring. Today the company is very conservative in its approach, sticking to a few tradelanes but covering them in depth, and with limited exposure to the over-capacity Asia-Europe trade. It is also innovative, being one of the first to invest heavily in IT, which spawned the client system CargoSmart. The result is a liner company that today is producing profits in a difficult market.
If you have anything interesting to say about OOCL, on or off record, then give me a call on INT+44 (0)7974 935477