China Shipping Container Lines News

The global shipping containers market garnered $9.29 billion in 2017 and is estimated to reach $12.08 billion by 2023, growing at a CAGR of 4.5% from 2017 to 2023.Surge in seaborne trade, rise of transportation services, and increase in number of manufacturing facilities drive the growth in the market, said a research report by Allied Market Research.However, decreasing economic growth in few nations in Europe and the Asia-Pacific region restrain the market growth. On the other hand, the implementation of development programs and different supportive initiatives present new opportunities for growth, it said.Based on size of container…

The global shipping containers market, which amassed $9.29 billion in 2017, is estimated to reach $12.08 billion by 2023, growing at a CAGR of 4.5% from 2017 to 2023.According to a report by Allied Market Research, surge in seaborne trade, rise of transportation services, and increase in number of manufacturing facilities drive the growth in the market. However, decreasing economic growth in few nations in Europe and the Asia-Pacific region restrain the market growth.On the other hand, the implementation of development programs and different supportive initiatives present new opportunities for growth, it said.Asia-Pacific is a lucrative region.

“If consolidation was the solution to all that ails shipping, then container liner companies would be super profitable. They are not. In ‘commoditized’ sectors of the shipping industry, which by now includes pretty much everything apart from very small niche markets, there is hardly any economies of scale at the company level. As long as bigger is not in fact much better, then meaningful consolidation will not happen.”Dr. Roar Adland, visiting scholar at MIT Center for Transportation and Logistics and Professor at the Norwegian School of Economics (NHH).Like any other business…

The ship-leasing unit of China’s state-owned shipbuilder China State Shipbuilding Corp. (CSSC) plans to raise as much as HK$2.2 billion ($280 million) in an initial public offering in Hong Kong.CSSC (Hong Kong) Shipping, the leasing company, is issuing 153.4 million shares at an indicative price range of HK$1.34 to HK$1.42. The minimum investment is HK$2,868.62 per lot of 2,000 shares.CSSC (Hong Kong) Shipping owns 100 vessels with a total value of $5.6 billion.According to Caixin, CSSC will remain the largest shareholder of the Hong Kong unit with 75% after the listing.The report said that CSSC (Hong Kong) Shipping has secured four cornerstone investors that subscribed for a combined 1.25 billion shares.The investors are China Reinsurance Corp., China Shipping Container Lines Co.

Orient Overseas International (OOIL) and its container unit OOCL have a good track record for above-average profits in a challenging market and a reputation for being a very well-run company, earning the moniker “The Perfect Bride” by Drewry Maritime Financial Research. Retaining the management team, processes and systems is a wise move and could be of enormous value to Cosco Shipping Holdings (Cosco), Drewry said. OOCL has an owned-fleet of 66 containerships aggregating approximately 440,000 teu. It is a young and modern fleet with an average age of 7.1 years and average nominal capacity of 6,600 teu. It is introducing its first 21,000 teu vessel with five more to deliver and options for another six which it could easily exercise.

China’s COSCO Shipping Development Co Ltd  announced a proposed nonpublic issuance of about 3.28 billion shares to specific investors, including its parent company, to raise up to 12 billion yuan ($1.79 billion), reports China Daily. COSCO Shipping Development will become a financing platform of its parent company－China Cosco Shipping Corp, the country's largest shipping company, according to its public statement. The company will use 6 billion yuan and 2.4 billion yuan from the proceeds for the capital injection into two of its subsidiaries, COSCO Shipping Leasing Co Ltd and Florens International respectively, while it will also use 1.8 billion yuan for the redemption of maturing corporate bonds and 1.8 billion yuan to refill the working capital of the company.

If both APL and UASC are included within their new parents, the top five ocean carriers now control approximately 54 percent of the world’s containership fleet, says Drewry. In 2015, the top 10 carriers were close to controlling 90 percent of the market. It is conceivable that at some point in the future further concentration will see 90 percent of the Asia-North Europe market being controlled by just five competitors, at which time the carriers will have much greater pricing power than they did in the past. Drewry said in its Container Insight Weekly that in addition to Hanjin Shipping, whose global presence was over, other brands that have effectively disappeared from the upper echelons of carrier rankings this summer included China Shipping Container Lines after its merger with Cosco…

Drewry says that the container shipping world is shrinking as M&A and carrier failures increase. Is reduced competition the real cost of low rates? The container shipping world is getting smaller. Hanjin Shipping may continue as a regional Intra-Asia carrier if its survival plan is successful but its days of being a leading global player in the Top 20 are over. Other brands that have effectively disappeared from the upper echelons of carrier rankings this summer include China Shipping Container Lines (CSCL) after its merger with Cosco, while APL and UASC are now merely sub-brands within larger companies after deals with CMA CGM and Hapag-Lloyd respectively.

The Panama Canal authority  (ACP) says a Chinese container ship’s damaging scrape with the canal’s new wider locks was caused by bad weather, Reuter quotes  ACP's  administrator, Jorge Quijano. He said that the only problem in the last month involved a China Shipping Container Lines ship, the Xin Fei Zhou, and it was due to intense rainfall and wind and the vessel not lining up correctly. Quijano says it was the only such incident in the widened canal’s first month of operation. He says unfortunately these things happen in their business. According to AP, before the canal’s inauguration, some tug boat captains expressed concern about having relatively little room to maneuver with the huge New Panamax ships.

Wärtsilä has been awarded the contract to supply newbuild Chinese container vessels with a total of 24 9-cylinder Wärtsilä 32 Auxpac generating sets. The engines will power six 21,000 TEU ships being built at the Shanghai Waigaoqiao Shipyard (SWS) for China Shipping Container Lines (CSCL). The order was placed in June with Wärtsilä's joint venture company CSSC Wärtsilä Engine (Shanghai) Co Ltd (CWEC). Because of its reliability, efficiency, and high availability the Wärtsilä 32 Auxpac engine has become a popular choice for vessels in the upper end of the shipping market. The Wärtsilä 32 is the most powerful of the company's Auxpac range of generating sets.

China Shipping Container Lines (CSCL) has proposed to change its name to Cosco Shipping Development Co (CSDC), in line with the company’s future business strategy and as a group member of China Cosco Shipping Corporation (Coscocs). "China Shipping Container Lines Co., Ltd. Board of Directors hereby announces that, in view of the Major asset restructuring program the company has been related to the motion of the Company and in February 1, 2016 the first meeting of 2016 Extraordinary General Meeting, through a major reorganization of assets, the Company will transfer container liner operators Type into a ship leasing, container leasing and non-leasing aircraft leasing business as the core…

Consolidation of shipping lines, realignment of carriers alliances, environmental improvements in the shipping industry and achieving supply chain efficiencies were all among topics addressed during the U.S.-China Bilateral Maritime Consultations held in Los Angeles last week. Federal Maritime Commission (FMC) Chairman Mario Cordero co-headed the U.S. delegation to the meeting with Deputy Maritime Administrator Michael Rodriguez. The consultations are organized by the Maritime Administration and the Chinese Ministry of Transportation and take place on a regular basis.

China COSCO Shipping Co. Ltd (China COSCO Shipping) officially  inaugurated the company “COSCO shipping Financial Holdings Limited (COSCO shipping Financial) in Hong Kong. It was former China Shipping (Hong Kong) Holdings, reports Sinocast. The formation of Cosco Shipping Financial followed the completion of the merger between China Cosco Group and China Shipping Group in February this year to become Coscocs. COSCO Shipping Financial Holdings, together with China Shipping Container Lines, will form a financial holding platform of China COSCO Shipping Corporation. Its businesses include ship leasing, container leasing and manufacturing, non-shipping business, equity investment, internal financial services, banking equities and insurance business.

Throughput at Cai Mep International Terminal, the APM Terminals facility in Vietnam’s Ba Ria‐Vung Tau province, southeast of Ho Chi Minh City, expanded by 130 percent in the first quarter as new service calls added in 2015 began to impact volumes. The container volume has surged by 130% to 277,303 TEUs for the first three months of 2016, as compared with the same period a year ago. This growth follows an 80% expansion in container traffic at CMIT in 2015 over the year prior, to 724,768 TEUs. CMIT, part of the APM Terminals Global Terminal Network, is a deep-water facility located in the Ba Ria‐Vung Tau Province, southeast of Ho Chi Minh City, and is capable of accommodating larger deep draft vessels of up to 15,000 TEU capacity, now cascading into Vietnamese trade routes.

Cai Mep, Vietnam - With five new services calls added to Cai Mep International Terminal (CMIT) since May of 2015, container volume has surged by 130% to 277,303 TEUs for the first three months of 2016, as compared with the same period a year ago. This growth follows an 80% expansion in container traffic at CMIT in 2015 over the year prior, to 724,768 TEUs. CMIT, part of the APM Terminals Global Terminal Network, is a deep-water facility located in the Ba Ria‐Vung Tau Province, southeast of Ho Chi Minh City, and is capable of accommodating larger deep-draft vessels of up to 15,000 TEU capacity, now cascading into Vietnamese trade routes.

Wärtsilä has been awarded a contract to supply its Wärtsilä Auxpac 32 generating sets for eight new 13,500 TEU container vessels being built for China Shipping Container Lines (CSCL). Four generating sets are needed for each vessel, making a total of 32 sets in all. The order was placed in March 2016 with Wärtsilä's joint venture company, CSSC Wärtsilä Engine (Shanghai) Co Ltd (CWEC). The ships have been ordered from the Hudong-Zhonghua yard in China. The total power output from the contracted Wärtsilä engines will exceed 100 MW. Delivery of the engines to the yard will commence in the first half of 2017. The Wärtsilä Auxpac 32 is the auxiliary engine version of theWärtsilä 32 family, of which more than 1,200 engines are in operation worldwide.

China Shipping Container Lines Co. posted a net loss of 2.9 billion yuan ($448.5m)  in 2015, compared with profit of 1.04 billion yuan in 2014, the nation’s second-biggest container shipping company said in a statement. China Shipping in January had forecast a loss of 2.8 billion yuan for 2015. The revenues also fell 12% to RMB31.83bn from RMB36.08bn previously, the company said. The operating result has been of sign negative for -2.49 billion yuan respect to an operating profit of 1.96 billion yuan in 2014. Both international and domestic volumes were affected, falling 3.6% and 3.4% respectively. Last year the fleet of portacontainer of Chinese CSCL has transported cargo volumes pairs to altogether 7.8 million container teu…

China Cosco Shipping plans to retain its current container alliances until they expire, after which it plans to sign a new deal, it said on Monday. The group's spokesman, Yu Zenggang, did not say when the current alliance agreements were due to expire. China COSCO , a unit of COSCO, is part of the CKYHE alliance with Kawasaki Kisen Kaisha, Yang Ming Marine Transport, Hanjin Shipping and Evergreen Marine, while China Shipping Container Lines , a unit of China Shipping Group, CMA CGM CMACG.UL and United Arab Shipping Co make up the Ocean Three alliance.

Several of the world’s top container lines are entering in different vessel-sharing alliances following the current wave of mergers and acquisitions among carriers, reports China Daily. There has been reports that had shocked the containership transport industry - the possible mega-alliance between French liner CMA CGM and China Cosco Shipping (COSCOCS), the recently merged China’s biggest shipping line. Formed by Denmark's Maersk Line and Switzerland's Mediterranean Shipping Co SA, the 2M operates more than 2.1 million twenty-foot equivalent units (or TEUs, the industry measurements of capacity of container ships and terminals), and owns 193 vessels.

All signs point to a continuation of struggling theme for containerized-ocean-freight industry  into 2016 and beyond, warns a study by AlixPartners. The containerized-ocean-freight industry suffered in 2015. Its continuing financial woes accelerated because nearly all key financial indicators declined from 2014. At the heart of the industry’s problems, a persistent global supply-and-demand imbalance is to blame. All signs point to a continuation of that theme into 2016 and beyond. The most-recent forecasts expect global container fleet capacity to grow by 4.6% in 2016, and another 4.7% in 2017, though spot prices for major routes have dropped 21 to 44% from a year ago because of plunging demand, now about half the current growth forecast.

The need of the hour is consolidation of container ship lines order to regain profitability and to overcome financial struggles, consulting firm AlixPartners says in a new report. The report says that an increased supply of vessels, coupled with the introduction of giant ships, had met with a dwindling demand in the second half of last year resulting to overcapacity, low profitability and reduced cash flow. The shippers with “M&A on their minds need to be proactive” if they hope to reap the kind of rewards winners in consolidated industries enjoy—or to prevent becoming acquisition targets themselves, the consultants suggested, pointing to the successful consolidation of the US airline industry as a possible template to follow.

A merger between Hyundai Merchant Marine (HMM) and Hanjin Shipping remains a real possibility, says the London-based analyst firmDrewry, who has looked at how such a company will look like. The research firm said in its Container Insight Weekly previous merger talks between HMM and Hanjin were put to rest by the Korean government last year, but the debt situation in both companies was causing serious concern in local circles and could bring the companies back to the table. “A merger would propel both carriers from being on the peripheries of the Top 20 to the become the fourth largest operator in the world (before the merger of Cosco and CSCL into China Lines) with combined worldwide volumes of 8 million teu from a fleet capacity of just over 1 million teu…

MacGregor has carried out optimised cargo system upgrades for two 14,000 TEU container vessels owned and operated by China Shipping Container Lines (CSCL). The vessels have re-entered service following the upgrades, which have been designed to increase their actual payload capacity. MacGregor and CSCL have signed a letter of intent for similar modifications for five more vessels. The vessels were built by Samsung Heavy Industries in 2011. Their MacGregor Cargo Boost system upgrades include modifications to the lashing system along with lashing bridge enhancement and the provision of Lashmate software. Planning for the upgrades was conducted in close cooperation between CSCL…