In the challenging market environment of shipping, improving efficiency is the key for cost reduction in balancing the company’s financials, said Tung Chee Chen, chairman of Orient Overseas (International).
The head of the Hong Kong-headquartered integrated transportation and logistics company said this at the 9th Singapore Maritime Lecture on 22 April, adding that a robust information technology (IT) system is important for efficiency.
“Orient Overseas has invested much into the IT department to improve our operational efficiency. Nearly half of the group staff is either in the IT departments or departments related to the work units responsible for the efficiency processes,” said Tung, highlighting the competitive edge that IT systems provide for Orient Overseas.
He believes that such operational efficiency can help shipping firms to ride out in the tough times of depressed freight rates and overcapacity faced by the shipping community. Besides IT systems, he urged shipping firms to look at other aspects such as land transportation system, fuel management, and terminal efficiency.
With these, Tung felt that shipping firms will be in good position to seize markets opportunities in the ever-increasing interwoven macro-economics.