Thursday, November 14, 2013

Container Shipping Partnership Means an Extra Ho for Christmas Whilst Rates Rise Again

New Asian Service to Open This Month will Trail Across the Continent
Shipping News Feature

ASIA – Two of the continents leading container shipping groups are to partner up with the inception of a new box service to be christened the New Ho Chi Minh Service (NHS). Evergreen Line is partnering with Hanjin to provide four 2,500 TEU vessels which will commence a port rotation linking Korea, China, Vietnam, Singapore and Malaysia for the benefit of local shippers. Hanjin will supply three out of the four box ships.

The ASEAN countries, made up of the majority of South-east Asian states, boast some of the highest forecast growth rates of any region of the world. In 2013 the ASEAN economy looks set to grow by 5% and next year’s estimate is 5.4% according to IMF’s World Economic Outlook report. For this reason Evergreen and Hanjin are seeking to provide an even more comprehensive network service than is already on offer.

Additionally, the two lines believe that the free trade development that will potentially result from the establishment of the Regional Comprehensive Economic Partnership (RCEP) will further drive cargo demand in the Intra-Asia trades. Negotiations to establish RCEP were initiated this year between ASEAN, China, Japan, South Korea, India, Australia and New Zealand.

Port rotation for the weekly service which commences from Kwangyang on the 22nd of November will be:

Kwangyang, Busan, Shanghai, Shekou, Ho Chi Minh City, Singapore, Port Kelang, Penang, Tanjung Pelepas, Singapore and Ho Chi Minh City before returning to Kwangyang.

In other container news ZIM Line is to implement a ‘General Rate Restoration’ (GRR) of $750 per TEU, on all cargo from Asia to Europe and the Mediterranean, effective as from December 15th, 2013. This rate increase will include trade from the Far East (excluding India) to North Europe, Scandinavia, Baltic, Adriatic, West Mediterranean, East Mediterranean (Including Israel) and Black Sea regions. The company says the increase is unavoidable and is being levied in order to maintain a sustainable service