China Shipping Group has announced that it has started a grain shipping service with COFCO, China’s largest grain trader.
Under an agreement between the two companies, China Shipping has customised a dedicated liner service for COFCO’s grain imports from Latin America.The new service has deployed one bulker, COFCO 1, for the service and will put another two vessels into service within this year.
The two companies expect to ship 3.5m tons of grain annually.
“This is in line with Beijing’s aim to get state-run firms to work more together. It is another sign that smaller, private shipowners will be muscled out of much of China’s ongoing shipping needs,” one analyst told Splash.
The latest issue of SinoShip magazine, published today, includes a focus on grain and China’s food security. Click here to read the report.