Wednesday, October 17, 2012
COSCO and China Shipping join forces on domestic trade routes
China's two premier shipping lines, China COSCO and China Shipping Container Lines, will collaborate to survive the economic downturn. The two will to jointly run domestic trade routes from north and northeast China to Fujian and Shantou in the southern province of Guangdong starting the middle of October.
Each company will have ships operating on the route.
"This move is just the start of an intensive cooperation in domestic container shipping between CSCL and COSCO," CSCL said Friday in a statement.
Global container rates, despite having dropped due to overcapacity and a flagging world economy, have rebounded in the second quarter on rising U.S. demand and the efforts of shipping companies to cut capacity.
Shares of CSCL and China COSCO have outperformed in the past five weeks, and were up almost 30 percent from their annual low in early September.
For more of the Reuters story: reuters.com
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