60th anniversary of the formation of Overseas Containers Limited

Overseas Containers Limited was incorporated 60 years ago today, on 27 August 1965.

Sixty years ago, in 1965, a chain of correspondence and meetings between the top management of four major UK shipping companies led to the formation of Overseas Containers Limited, the company that was to become P&O Containers in the mid-1980s before forming 50% of P&O Nedlloyd just over ten years later.

On 4 May 1965 Sir John Nicholson, chairman of the Ocean Steam Ship Company, wrote to Sir Donald Anderson, deputy chairman of P&O Steam Navigation Company, saying:

"As you may know, over the last 2 or 3 years, the British West African Lines in conjunction with the United Africa Company have engaged on a very thorough survey of the potentialities of through container traffic. This led recently to the establishment of a company called African Container Express which now offers a form of through container service from source to destination of cargo in both directions.

We have concluded that something of the same kind must spread sooner rather than later in most deep sea trades, observing that for example, we believe that something like 50% of the UK/Far East general cargo is suitable for carriage in containers or on pallets. Obviously enough, this development would have the added attraction of strengthening the Conference hold over shippers if the through traffic facilities could be restricted to Conference Lines.

The Blue Funnel (Ocean/Alfred Holt) cargo vessel ss Laomedon, typical of the type of vessel on the main worldwide trade routes in the 1950s and 60s.

Looking a little further, it seems to us that this operation must:

a) be conducted on a sufficiently large scale to sustain what may be quite a large investment.

b) avoid competition in this field by Conference members.

It therefore looks to us as though it might be undertaken by a combination of at least four if not all six of the largest groups, probably with the addition of of Ben and Blue Star, who, if left outside, might be driven to competing in their own trades by under-cutting the established through rates.

If you see any sense in our thinking, I hope you may be interested in the proposition that we should jointly seek to promote an undertaking of this kind as it will need most careful steering.

I have said nothing to any other possible participants, though Shaw Savill, as our partners in the West Coats/Australian Trade, did recently ask Ronnie Swayne whether we have been thinking about this problem and in such a way that we must give them an answer before long."

On 6 May Sir Donald Anderson wrote back, replying:

"Many thanks for your letter of May 4th. As you know, we are already giving preliminary thought to containers in the long distance trades and believe that their arrival is only a matter of time; that we don't want to be forestalled by an outsider, but that in some ways it is easier for an outsider to introduce them than for an established Conference member to do so.

If we are to work with anyone else it is Alfred Holt and Company whom we certainly would choose, and the sooner we have a talk about possible collaboration with you, the better.

As for widening the collaboration to four or six or eight, there are obvious advantages, but equally obvious objections in practice. Our decisions would be slow and cumbrous, and we would not advance so fast. We would need to think carefully about how wide any association you and we decide to form should stretch.

When will you next be down here with some time to spare - perhaps for dinner, if not during the day!"

A series of informal meetings then took place, often over dinner at Brooks's Club in St James's Street in London. On 1 June an approach was made to Sir Nicholas Cayzer, chairman of British & Commonwealth. In late July the decision was made to invite Furness Withy & Company to join as the fourth line.

Liverpool Daily Post, Thursday 2 September 1965

On 5 August 1965 Sir Donald Anderson for P&O, Sir John Nicholson for Ocean, Sir Nicholas Cayzer for British & Commonwealth and Sir Errington Keville for Furness Withy met at Brook's Club to confirm their agreement to the establishment of Overseas Containers Limited (OCL). The company was then incorporated on 27 August with a press release issued on 2 September.

The first board members were:

Harry Beazley (P&O)
Hon. Anthony Cayzer (British & Commonwealth)
Sir Andrew Crichton (P&O) - Chairman
Henry Hildyard (Furness Withy)
Ted Lemon (British & Commonwealth)
Bob Russell (Furness Withy)
Kerry St. Johnston (Ocean)
Ronnie Swayne (Ocean)

Major-General G Errol Prior-Palmer (British & Commonwealth) was appointed as Managing Director.

Source:

British Box Business - A History of OCL

Edited by Alan Bott OBE

Published by SCARA with support from the late Sir Adrian Swire and the Maersk Company