Shanghai: A group of Chinese shipowners which operate container services on Japan routes has jointly sent a letter to Shanghai Shipping Exchange (SSE) to complain about the C3 alliance.
C3 alliance has been established by three state-owned shipping companies Cosco, China Shipping and Sinotrans in May to jointly operate container services on Japan routes. The three companies have each added 1000teu capacity at Shanghai, Qingdao and Dalian.
In the letter, the shipowners said the market imbalance has been worsened since the establishment of the alliance which has occupied 39% , 50%, 47% ,26% market share at Dalian, Tianjin, Qingdao and Shanghai. Currently the container shipping markets from China to Japan have all been suffering from losses. The loss per teu from three major ports Shanghai, Qingdao and Dalian to Japan has been increased to $500, $650 and $580 respectively, the shipowners said.
“Every week there are roughly 40,000teu in total exported from Chinese ports to Japan, and the total loss on the market is about RMB100m each week,” the shipowners warned.
The shipowners claimed that C3 alliance has violated the regulations by SSE and requested SSE to look into the matter and fulfil its duty as a transport authority. [23/06/14]