Asian shipping firms launch Asia/Africa service

Several Far East shipping companies are cooperation to operate services between Asia and Africa.

The Korea Maritime Institute said that in the late 1990s Far Eastern shipping companies commonly added services on routes between Asia and Africa.

Currently in the route, three major Japanese deep-sea liners, NYK, MOL, and K-Line, and two Chinese shipping companies, COSCON and the China Shipping Group, are involved. Other major Asian shipping companies, including the Taiwanese shipping firms, Evergreen and Kien Hung, Singapore’s PIL, and the Malaysian shipping firm MISC, have been involved with the trade as well.

However, Korean shipping companies, including Hanjin Shipping and Hyundai Merchant Marine, are not taking direct action in the route.

Coming into the 21st century, swelling Asian/African trade cargoes are expected to hit 486,000 TEU this year, an increase of 3%, and the trade is predicted to reach 506,000 TEU in 2003, an anticipated increase of 4%.

In spite of container cargo growth, annual container capacity of 1 to 1.1 million TEUs is far more than what is needed in this trade.

20-foot container rates for export cargoes between Hong Kong and West African ports are between 1,600 and 1,800 dollars and 600 to 800 dollars for import cargoes.

Despite the disparity, container liners are operating vessels in the trade in order to secure a firm position in the market.

Shipping companies predict that the liner market in Africa will expand in western Africa where there is oil and in South Africa, which now boasts a stable economy.