COSCO and China Shipping to join forces
China Shipping Container Lines Co Ltd (CSCL) has entered into a new agreement with COSCO Container Lines Co Ltd, to jointly operate trade routes from north and northeast China to Fuijan and Shantou in the southern province of Guangdong.
The two shippers have a combined market share of 80 percent in the domestic coastal container trade. In the agreement, which begins in mid-October, the two companies would each deploy ships to jointly operate the routes, according to CSCL.
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In a statement released today, CSCL said: "This move is just the start of an intensive cooperation in domestic container shipping between CSCL and COSCO."
Container freight rates have been battered in recent years, suffering from a slowing global economy. Rising US demand and efforts to cut costs, however, have resulted in a small rise in the second quarter.
Shares in China COSCO, which also operates the world's largest dry bulk cargo fleet, are still down around 6 percent so far this year, while CSCL's stock has been flat.