Shanghai: COSCO-controlled Shanghai Pan Asia Shipping, China Shipping-controlled Shanghai Puhai Shipping and Sinotrans Container Lines have jointly signed an agreement yesterday to cooperate on Japan routes in order to eliminate competition and maximize benefits.
The three companies will add capacity and share routes to Japan from operations at Shanghai port, Qingdao port and Dalian port.
“It’s a good thing that shipping companies work together on a certain route to better coordinate capacity and lower the cost, but if the alliance keep adding capacity to the market, it might break our quota policy for Japan routes,” said Wang Junyao, deputy director of Qingdao Shipowners’ Association.
Qingdao is the most competitive market for Sino-Japan container shipping, the association made a quota for shipping companies on the route two years ago in order to stabilize the market and avoid price wars. [07/05/14]
