MOL "Moves into a Counteroffensive Year" with 20,000 TEU Box Ship Orders

by Ship & Bunker News Team
Tuesday January 6, 2015

Mitsui O.S.K. Lines (MOL) says 2015 will be a "counteroffensive year" as it attempts to revitalise its containership business by upgrading its fleet to 20,000 TEU mega-ships. 

Writing in his 2015 New Year Message, MOL President Koichi Muto said the change will make the company more cost-competitive, with restoring profitability as the key objective heading into the new year. 

"I think many of you may be worried about our containership business," he said.

"And the fact is, in terms of competitiveness and earnings strength within the industry, we are somewhat behind."

Plummeting freight rates last year due to overcapacity on the Asia-South America East Coast routes have led the segment of the business to "significant" deficits, said Muto, despite an increase in cargo volume on the East-West trade.

However, Muto predicts that global economic expansion will lead to growth opportunities among container terminals, while the falling yen and decrease in bunker prices will also help to pad the company's bottom line. 

Diversification will also see the company expanding its liquid natural gas (LNG) and offshore business divisions. 

A 20,000 TEU ship would beat the current largest-capacity ship, Mediterranean Shipping Co's 19,224 TEU MSC Oscar, which stole the crown from China Shipping Container Lines' within months of the debut of the 19,100 TEU CSCL Globe, the Loadstar reports.

Last year Lloyd's Register predicted that 24,000 TEU ships could soon be on the horizon, while Ship & Bunker insiders predicted what would bring a halt to the box ship growth.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com