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Smash hit Splash picks out the biggest stories in what has been a banner year for many local shipowners
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fter more than a decade where Hong Kong’s generally canny owners have kept their heads low, seeking to get through shipping’s lost decade, 2021 has been a banner year for most with container and dry bulk earnings spiking. In general, however, in keeping with the conservative nature of the city’s shipowners there has been little in the way of excess or irrational outlay; the previous tough years have kept this business community on a tight leash.
a decade. The two men are pictured above playing table tennis on Berglund’s final day in charge. Fruergaard, a Dane, also previously served several senior roles in Maersk Bulk Carriers, Maersk Tankers and Maersk Drilling. Having paused fleet expansion plans at the start of the pandemic, Pacific Basin roared back into action 12 months ago and has been buying plenty of secondhand tonnage, while also getting rid of some vintage units.
Pacific Basin
OOCL
The big news at Pacific Basin, the territory’s listed largest dry bulk operator, was a change at the top with Swedish national Mats Berglund deciding it was time to head home after nine years as CEO. At the end of July Martin Fruergaard, formerly the CEO of Ultragas took over from Berglund, joining the company at a propitious time where handy and supramax rates - the focus of the Pacific Basin fleet - were hitting highs not seen in
It’s now more than three years since Cosco completed its buy-out of Hong Kong’s flagship liner, OOCL. The Hong Kong firm still maintains its own identity and is still very much considered a bellwether for container line fortunes. It’s third quarter results - published in early October paint their own picture of the sky-high, unprecedented times carriers have been through in 2021. OOCL saw revenues grow by 125.3% year-on-year to $4.3bn for the
three-month period. The $6.7bn Cosco paid for the then Tung family-controlled carrier has easily been recouped and then some in this stellar year for box shipping. In September OOCL entered into shipbuilding contracts with two yards belonging to parent, Cosco, for the construction of ten 16,000 teu containerships. The latest deal takes OOCL’s newbuilding orderbook to 22 vessels. Meanwhile, in August OOCL debuted a landmark new rail-sea service connecting China to the US east coast. The new offering is a combination of the Chang An China-Europe block train service from Xian to Kaliningrad with onward feeder to Bremerhaven, and then with OOCL ocean services from Bremerhaven to various ports on the US east coast. The service is the first of its kind to be operated by an ocean carrier, connecting China and North America by using the Asia-Europe Land Bridge and the Atlantic Ocean.
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