Hot competition for Chinese markets

Domestic shipping companies that have suffered from a prolonged and deep slump are competing together in Chinese markets.

A leading Korean shipping company, Hanjin Shipping, added Chiwan, a gateway to China, to its direct China to Europe Express (CEX) route.

Hanjin also decided to expand ports of calling in China to 12 ports by the end of this year, and to replace its current fleet of five 2,700 TEU vessels to 4,350 TEU vessels by May next year.

Hanjin launched its China/Australia Express last August and put Shanghai in its Asia/Mediterranean/America Express (AMA) service trades last September, strengthening Chinese markets.

Hyundai Merchant Marine, also set up new branch offices in Wuhan and Chongqing, last month to facilitate inland railroad network systems through the Yangzijiang river. It also plans to establish an office in Shenzhen, increasing its inland offices to 14 by the end of this year.

HMM inaugurated its China/Europe Express (CEX) service in June 2001 with its partner shipping liners, APL and MOL.

Overseas companies also are eager to enter the Chinese market.

Maersk-Sealand, permitted to establish a wholly foreign invested company in China in 1998, set up a wide network through coastal areas as well as inland areas, operating 35 offices in China.

OOCL, headquartered in Hong Kong, has 22 offices in China and reinforced inland services through cooperation with Chinese transportation companies.

An industry worker predicted, "China is emerging as a new market for struggling shipping companies. There might be severe competition in China amongst those companies from next year."