Taiwanese intra-Asia carrier Wan Hai Lines will launch a China-Thailand-Vietnam service with Maersk Sealand and Interasia Lines.
The CTV service, to begin on 15 May, is part of Wan Hai’s strategy to consolidate its market share in the competitive intra-Asia segment.
Wan Hai said, “At present, the impact of the Covid-19 pandemic on cargo volumes on the China-Southeast Asia route, has been relatively mild, so we are moving in early to secure our position.”
Wan Hai, Sealand and Interasia, a Japanese regional carrier, will each assign a 1,200TEU vessel to the CTV service.
The 21-day rotation will set out from Ningbo and call at Shanghai, Laem Chabang, Bangkok, Laem Chabang, Ho Chi Minh and Ningbo.
Amid the US-China trade tension, manufacturers have shifted some output from China to Southeast Asia, especially Vietnam. Therefore, Wan Hai expects earnings will rise by adding more services to the region.
Wan Hai now operates 45 intra-Asia routes and intra-Asia cargoes account for 74% of the company’s total freight volume. It is estimated that Wan Hai has a market share of 15% in intra-Asia shipping.
For 2019, Wan Hai’s net profit went up by 220% to TW$3.57 billion (US$118.94 million), due in part to higher cargo volumes to and from Vietnam.
Wan Hai, said, “Looking forward, the Covid-19 pandemic is inhibiting the global economy. Movement restrictions and lockdowns in many countries will inevitably adversely affect the demand for logistics and shipping. We will monitor infection prevention measures and the lifting of blockades in various countries and respond accordingly.”