Forbid new entrants into domestic container shipping, local operator urges

Shanghai: The boss of domestic container operator Zhonggu Shipping has called on the government to help the industry.
Lu Zongjun, the general manager of Zhonggu, told SinoShip magazine in an interview set to be published next week, that there were solutions to hand for authorities to aid the industry.

“The Ministry of Transport has already set up a threshold for the domestic coastal oil shipping market by forbidding new capacity entering the market. They could introduce a similar policy for the domestic container shipping market,” Lu said.

In order to deal with the current downturn, Zhonggu Shipping has made efforts to cooperate with other container shipping companies and ports.

“The cooperation between Cosco and China Shipping on domestic routes has set a good example for regulating the domestic shipping market, and it is a good way to solve the overcapacity problem,” Lu said.

Currently Zhonggu Shipping operates a fleet of more than 40 vessels with total capacity of about 30,000 teu. 12 of the vessels are self-owned and the rest of the vessels are on short-term chartering contracts.

The summer issue of SinoShip magazine will be released next week and made available for free online. It will also be official media at Posidonia in Greece.  [14/05/14]

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