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State-owned 'C3' alliance spooks players plying the China Japan trade
A SLOT-SWAPPING vessel sharing deal among China's top three state-owned shipping companies has been formed on the small but volatile China-Japan trade, arousing objections from rival and shippers.
Privately-owned regional player SITC Container Lines has joined Shanghai Hai Hua Shipping to deploy 11 ships on 10 East China-Japan services as other smaller carriers started sharing more space in response.
Now arrayed against them are state-owned Shanghai PanAsia Shipping, a Cosco unit; Shanghai Puhai Shipping, China Shipping unit and Sinotrans Container Lines in what has been called the C3 alliance.
This group will increase frequency in sailings and carry out other acts of co-operation, prompting complaints from local players that eventually led to a government probe.
An open letter addressed to Zhang Ye, president of the Shanghai Shipping Exchange (SSE), and circulated to the Chinese media, complained of price wars and "extreme market disorders".
The anonymous letter, said to be from rival carriers, shippers and agents, said that C3 "increased shipping capacity unilaterally, violated regulations and was suspected of "monopoly and price dumping."
The SSE confirmed it had reported the accusations to China's transport ministry, which began to investigate freight rates on this trade with the exchange and local authorities at the end of July.
Privately-owned regional player SITC Container Lines has joined Shanghai Hai Hua Shipping to deploy 11 ships on 10 East China-Japan services as other smaller carriers started sharing more space in response.
Now arrayed against them are state-owned Shanghai PanAsia Shipping, a Cosco unit; Shanghai Puhai Shipping, China Shipping unit and Sinotrans Container Lines in what has been called the C3 alliance.
This group will increase frequency in sailings and carry out other acts of co-operation, prompting complaints from local players that eventually led to a government probe.
An open letter addressed to Zhang Ye, president of the Shanghai Shipping Exchange (SSE), and circulated to the Chinese media, complained of price wars and "extreme market disorders".
The anonymous letter, said to be from rival carriers, shippers and agents, said that C3 "increased shipping capacity unilaterally, violated regulations and was suspected of "monopoly and price dumping."
The SSE confirmed it had reported the accusations to China's transport ministry, which began to investigate freight rates on this trade with the exchange and local authorities at the end of July.
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