Singapore's Ocean Network Express aims to surpass its Alliance partner Hapag-Lloyd, targeting a fifth-place ranking by boosting its fleet by approximately 10% annually until the end of this decade.
In its ONE 2030 strategy, the company announced a $25 billion investment to increase its capacity by nearly 1.2 million TEUs, aiming for a total fleet size of 3 million TEUs.
Alphaliner's senior analyst, Stefan Verberckmoes: "One of the main reasons explaining the strategy is that they are aware that a carrier needs economies of scale to be profitable to finance decarbonisation."
Despite these ambitions, Mark McVicar, a former research analyst, commented, "The move is an attempt to gain market share, but in order for the market to remain buoyant it relies on the assumption that others will cede market share."
The anticipated fleet growth marks an increase from an initial 4% to an eventual 10% yearly, surpassing global market growth projections until the decade's end. PWC forecasts a 3-3.5% annual increase in global GDP during this period. "ONE should realise an annual fleet growth of around 10% until 2030 to reach its goals. That's indeed a very ambitious plan in a market where moderate growth and overcapacity is expected," Verberckmoes further elaborated. Additionally, the ONE 2030 strategy outlines plans for acquiring terminals in strategic global locations and delivering sustainable vessel solutions in compliance with upcoming regulations.
Source: container-news.com