Containers loaded onto Xinyi Glass Ship Photo: Shaun Xie
China’s Xinyi Glass has become the latest shipper-turned-shipowner, with its 1,500 teu containership built by Jiangsu Dajin Heavy Industry.
The vessel, which was ordered in 2022 and delivered last month, will transport raw materials, semifinished and finished products from Xinyi factories in Malaysia to China.
Xinyi manufactures glass products for the automotive and construction industries. Ford and Volkswagen are among its customers. It said that having its own ship will allow the company to control shipping costs in light of a rise in freight rates.
Vice-chairman Dong Qingbo stated: “This route will greatly improve the efficiency of our supply chain and reduce the cost of materials transportation between our domestic factories in China and Malaysian factories.”
Chinese customs officials offer expedited clearance for Xinyi Glass and have stated that the new ship will not spend more than twelve hours in port.
The pandemic-induced peak was a major factor in the shift of shipping lines. Tailwind Shipping Lines is a container shipping company that Lidl has set up to transport goods between Asia and Europe. It also has customers outside of Lidl.
Malaysia is one of China’s Belt and Road Initiative’s collaborators. The launch of Xinyi Glass’s self-operated routes forms another link between China and Malaysia.
Huang Jing, deputy director of customs for China’s Shatian District, said: “From the beginning of this year to May, we supported Dongguan port in adding five new routes. These included Ho Chi Minh City, Vietnam, and Tanjong Bruas, Malaysia. We will optimise regulatory measures to reduce congestion and promote the continued growth of Dongguan’s export-oriented economic.
In 2020, Xinyi purchased two 5,000 dwt ships from Taizhou Tai Marine Heavy Industry and Equipment. Xin Yi Bo Li 01. and Xin Yi Bo Li 02. will be delivered in 2022. Each ship can carry 150 teu for coastal voyages.
Listen in on this clip from Visy Global Logistics’ Peter Sundara Swamickannu to find out if this is a peak or if we should expect an enormous Q3