As the operating environment gets more tricky for exposed new entrants on container shipping’s main east-west tradelanes, two Chinese carriers have vowed to work closer together.
Fast-growing China United Lines (CU Lines) and its compatriot Antong Holdings are expanding their cooperation with a new framework agreement to jointly invest in shipping and logistics-related industries.
The deal follows a strategic partnership CU Lines announced in May this year which has already seen Antong Holdings-controlled Ansheng Shipping deploying 12 ships onto the transpacific and Asia-Europe trade lanes.
CU Lines and Ansheng are the 20th and 21st largest liners in the world, according to data from Alphaliner.
A recent report from Linerlytica pointed out that several of the new entrants to the Asia-Europe and transpacific markets have significant tonnage commitments that will not allow them to easily remove their vessels in the short term.
This month’s Alphaliner data looking at the top 30 carriers showing CU Lines relies on chartered in tonnage for 87% of its needs.
Alphaliner predicted: “As long as contract rates remain intact, the industry is likely to see a widening two-tier market differentiated by those carriers who have signed long-term contracts at elevated rates, and those relying on the softening spot market.”
