OOCL OPTIMISTIC ABOUT INDUSTRY PROSPECTS
The container shipping industry will rebound in the next few years, as
pressures exerted by overcapacity and expansion-minded Asian carriers
decrease, said C. C. Tung, chairman and chief executive officer of Orient
Overseas (International) Ltd.
"Consolidation continues after unprecedented activity in 1996 through
1998, and the rapid capacity expansion seen in that time has largely come
to an end," Tung said in the company’s annual report, just published.
The phase of "extraordinary growth" by Asian carriers and the
resulting
"fierce struggle for market share" is now over, he said, adding that the
majority of containerized cargoes is now carried by Asian operators.
Tung, whose company is the parent of OOCL, said that he expects less
volatility in the future in container shipping.
"Asian aspirations to have a major role in the industry to support
Asian’s participation in world trade have largely been realized, and there
seem to be fewer new entrants on the horizon," he said.