Zhonggu to target containerised dry bulk to fill fleet of new box ships

9:47pm 27th November 2022





Zhonggu Logistics, China’s largest coastal liner operator, wants to attract more containerised dry bulk cargo to boost revenue, as it begins taking delivery of 18  4,600 teu ships ordered last year.

The company believes this is “a more feasible” way of boosting revenue as the container freight market continues to weaken.

Ranked 18th among liner operators, with a capacity of over 120,000 teu, Zhonggu said the newbuild deliveries began last month, with one ship arriving every other month.

They will nearly double Zhonggu’s capacity and boost coastal container shipping capacity by nearly 60%.

Zhonggu said: “Container shipping is less polluting than pouring dry bulk cargo into holds. Besides, containers have been shown to have low carbon emissions. If we can persuade bulk cargo shippers to switch to containers, the shipping industry can reduce its carbon footprint.

“Furthermore, it’s more convenient to load and unload container ships, and this could cut logistics costs.”

In the first nine months of 2022, Zhonggu’s revenue was up 18% year on year, to $503m, while net profit rose 45%m to $8.96m.

While container freight rates on international routes have been sliding since the summer, Zhonggu said coastal freight rates had been steady.

It said: “Q4 tends to be the peak season for coastal shipping and we expect upswings.”

That said, Zhonggu is hoping to launch more overseas routes, particularly to South-east Asia, having launched China-Vietnam services last year. The company is looking at how to grow its shortsea shipping business and is “looking for new opportunities in Asia”.

More container acquisitions can be expected next year as Zhonggu competes to fill its ships. And it is also developing its warehousing business, aiming to build logistics parks in Tianjin, Qinzhou, Rizhao, Xiamen and Shanghai.

Source: theloadstar.com,
By Martina Li

9:26pm 22nd November 2022
Australia's FWC vetoes Svitzer tugboat lockout to avoid economic damage

Following intense political pressure and intervention from Australia’s Fair Work Commission (FWC),...

Read more

10:00pm 20th November 2022
Low ocean shipping rates here to stay as overcapacity looms

Carrier expectations of a rule-enforced ship-scrapping bonanza – and capacity reduction of around ...

Read more

10:58pm 17th November 2022
Liverpool strike cancelled with union and employers close to deal

The latest round of strike action at the Peel Ports-operated Liverpool docks has been postponed afte...

Read more

9:36pm 15th November 2022
COP27: Infrastructure worries hang over Atlantic

The UK has signed up to a ‘green corridors’ agreement alongside Norway, the Netherlands and the ...

Read more

Our Partners

Copyright 2023 © FPS Group All right reserved.