In May, Orient Overseas Container Line christened the world’s biggest container ship, the OOCL Hong Kong — a bold statement given the industry has been hit hard by overcapacity.
Just two months later, the controlling family is selling the world’s seventh-biggest container shipping line to Cosco Shipping, its Chinese state-owned rival. The $6.3bn cash deal symbolises Beijing’s ambitions to dominate global trade, the deepening consolidation in this troubled industry and the eclipse of Hong Kong’s traditional role as China’s gateway.
The proposed acquisition of Hong Kong-listed Orient Overseas (International) Limited (OOIL), which is OOCL’s parent company, will push Cosco from fourth to third in terms of global container shipping market share, increasing the pressure on its biggest competitors, Denmark’s Maersk and Switzerland-based Mediterranean Shipping Company.