COSCO Shipping expands business in Latin America
Sep-30-2014 By : fcccadmin
COSCO Shipping’s business has expanded to eight Latin American countries this year as the continent’s economy is expanding. COSCO Shipping entered Latin America in the 1960s and has now deployed 20 vessels between China and Latin America, with six ships operated on the route each month. Thanks to China’s surging vehicle trade with Venezuela, Brazil, Uruguay and Argentina in recent years, the company’s China-Latin American route has seen rapid growth in maritime vehicle transportation. Its business rose 45% year-on-year in 2013. It also delivers vehicles from South Korea and Japan to Latin America. One of COSCO’s biggest shipping assignments this year was the contract to transport more than 1,000 rail products including locomotives, trams, and freight and passenger cars to Brazil and Argentina within two years. The carrier also sealed deals to transport wind turbines, wind power systems, mechanical and electrical products, as well as construction materials for building new power plants, cement and sugar refinery factories, and other projects throughout Latin America this year.
Chinese shipping firms to face competition from 2M
By : fcccadmin
Container ship operators from China are facing fresh pressure from the new 2M alliance between Denmark-based Maersk Line and Switzerland-based Mediterranean Shipping Co. The new grouping comes after the three-party pooling alliance P3 was turned down by the Chinese government. The two European companies signed a 10-year vessel sharing agreement earlier in July to enhance their earnings capabilities. Zhang Shouguo, Vice President of the China Shipowners’ Association, said the government had rejected the P3 alliance because it had a combined market share of about 30% of the global container shipping market. Maersk and MSC have jettisoned the French container line and formed a vessel-sharing agreement in such a way that their combined market share is below the 30% threshold. Unlike the P3 network, the 2M partnership will operate more as a vessel sharing agreement without any separate independent organizations or executive powers managing the network. The agreement doesn’t include joint marine operations. Each party will execute its own operations, including stowage, voyage planning and port operations. Maersk and MSC can also manage their sales, pricing, marketing and customer service functions independently. The 2M network includes 185 vessels with an estimated capacity of 2.1 million TEU, deployed on 21 routes on three trade lanes: Asia-Europe, trans-Pacific and trans-Atlantic. The 2M vessel-sharing agreement is expected to start in early 2015 following approval by relevant authorities.
Crude oil tanker joint venture set up
By : fcccadmin
Shanghai-listed, Hong Kong-based China Merchants Energy Shipping (CMES) is partnering with Sinotrans & CSC, China’s third-largest shipping and logistics conglomerate to set up a USD1.1 billion joint venture that could boost China’s energy shipping capacity. CMES is taking a 51% stake in the new venture, injecting its 19 very large crude carriers (VLCCs), both live and on order, valued at USD565.9 million, in addition to cash. Sinotrans & CSC will pay cash for its share of the venture. The vessels will be managed by CMES subsidiary Associated Maritime Co (Hong Kong). Sinotrans & CSC, with its main energy shipping subsidiary Nanjing Tanker, is ranked as the world’s ninth-largest VLCC operator by live fleet size, according to Clarksons data.
Qinhuangdao Port set for record coal deliveries
By : fcccadmin
Qinhuangdao, China’s largest coal port, is set for record commodity deliveries over the next three years as urbanization boosts demand for the fuel. Shipments of mainly coal and ores via the port may rise by 20 million to 30 million tons by 2017, said Xing Luzhen, Chairman of Qinhuangdao Port. Supplies hit a record high of 279 million tons in 2011. China depends on coal for 66% of its energy. The port is the delivery point for about 40% of China’s seaborne coal. Qinhuangdao Port’s new terminal in Caofeidian, with an annual capacity of 50 million tons, may begin trial operations this year, Xing said. Qinhuangdao Port will benefit from having stable contracts of as long as 10 years that cover about 70% of throughput.
ASEAN Ministers agree to promote Maritime Silk Road
By : fcccadmin
Economic and Trade Ministers of ASEAN countries have reached a consensus at a meeting in Nay Pyi Taw, Myanmar, to work with China to accelerate the development of the maritime Silk Road. Chen Yingming, Executive Vice President of the Shanghai-based China Port and Harbors Association, said that as a majority of ASEAN nations have long coastlines and important regional ports, this move will help link growth centers like Shanghai, Singapore and Penang in Malaysia, as well as develop new regional hubs, such as Jakarta in Indonesia and Danang in Vietnam. The maritime Silk Road begins in Fuzhou in Fujian province, and heads south into the ASEAN region. From the Malacca Strait, it then turns west to Europe, according to one version of the blueprint. China has maintained its position as ASEAN’s largest trading partner, with trade volume reaching USD350.5 billion at the end of 2013. The figure accounted for 14% of ASEAN’s total trade and represented an increase of 7.7% year-on-year. Last year, ASEAN received USD8.6 billion of direct investment from China, a significant 60.8% increase year-on-year and representing 7.1% of total inflow to ASEAN. Guangdong province plans to set up overseas trade offices in ASEAN countries as part of plans to improve business links. The province is also encouraging local enterprises to establish production bases, marketing networks and regional headquarters in ASEAN countries.
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