CIMC Joins Cruise Line Industry Charters Vessels For Service On The West Coast Of The United States

Saffeen Prime Source Ship Detector

The world’s largest container maker has joined the gold rush on trans-Pacific shipping routes.

The charging star has learned that China International Marine Containers (CIMC) has started shipping containers from China to the west coast of the United States, after freight rates on the track hit a record high of $ 20,586 / teu in September, according to Freightos.

If CIMC’s main activity remains the manufacture of containers, it is also active in other fields, in particular logistics as a freight forwarder.

A CIMC employee confirmed The charging star that the company had chartered vessels to move containers from China to the west coast of the United States, but declined to disclose details of the vessels.

“We deal with shippers who move entire containers. For shippers with small volumes of freight, we will direct them to our freight forwarding department, ”the employee said.

In July, CIMC chartered the 1,700 teu Mount Nicholson for $ 85,000 a day for six months, and ship tracking data shows the ship just joined the queue of ships outside Los Angeles, after leaving Shanghai on September 3.

More recently, last month, CIMC chartered the 2,500 teu Safeen Prime for $ 150,000 per pear day for six months and the 1,700 teu Ophelia for $ 100,000 a day for four months.

The main shareholder of CIMC is the Chinese state conglomerate China Merchants Group.

Recently, a few NVOCCs have chartered vessels to ensure space for shippers amid a tight supply of capacity and containers and Drewry’s senior manager (container research) Simon Heaney said The charging star NVOCCs need not worry about possible reprisals from mainline operators for chartering vessels.

He said: “A number of the big carriers are also looking to locate in NVOCC territory, so I don’t think they can be too upset. Assuming the market stays the course, carriers are going to get very big contract fare increases next year anyway, so they don’t have to worry. “

But Mr Heaney added: “I don’t see non-traders sticking around when rates fall to more normal levels. There are no certainties and a lot of risk in the world of container transport.

“Our basic forecast is that the container trade will continue to grow strongly over the next six months and beyond, but a completely unpredictable large-scale outbreak of the virus at any major manufacturing site, for example, could slow down the market. The charterers would then be in serious danger because they concluded very expensive contracts over longer periods. “

CIMC reported a net profit of $ 654.49 million in the first half of 2021, due to the shortage of containers fueled by sales. Sales of dry containers totaled 1.15 million teu, up 220% year-on-year, and refrigerated container sales climbed to 94,500 teu, up 76% year-on-year.