Ocean Cargo: More container capacity moving to intra-Asia trade

Patrick Burnson, Executive Editor -- Logistics Management, 5/16/2008

SAN FRANCISCO—Yet another indication that Chinese ocean carriers are hedging their bets when it comes to putting deployment strategies together has become evident with the recent announcement made by OOCL to create a branch office in Southeast Asia.

 “The opening of the office in Da Nang is part of our strategic plan for Vietnam in response to the fast growing economy of the country,” said Xu Weiguo, general manager of OOCL Vietnam. “More importantly, the city of Da Nang has an international airport, seaports, railway and roads.”

It is also the gateway to the trans-Asian route, he noted: “These facilities promote trade within Vietnam, as well as with its neighboring countries and with the rest of the world.”

 According to spokesmen, the opening marks an important milestone for OOCL Vietnam (OVCL), and the establishment of the new office will help to further develop the Vietnam market, enhance its network and provide OOCL’s Vietnam-based shippers with a vital link to world trade.

 “With the rapid economic growth of Vietnam and Da Nang City in particular, we strongly believe cargo potential will be very encouraging over the coming years,” said Xu. “This branch office will enable us to offer enhanced and comprehensive services through internal integrated systems, dedicated full-functional organization and extensive service network, linking Vietnam to Asia, India Sub-continent, Australia, Europe and North America,”

 In an interview with LM, maritime analyst Jon Monroe speculated that such announcements also signal a move toward saving on energy expenses.

 “We definitely see a trend in this regard,” he said. “Regional deployment makes sense for a number of reasons..including being ‘greener.’”

 The Da Nang branch office will cater to the diverse needs of domestic and international businesses, offering logistics and international maritime transportation services, and further strengthening OOCL’s position in the central Vietnam market, said company spokesmen.