News / CULines snaps up SeaLead tonnage to expand Middle East services

Credit CU Lines

China United Lines has capitalised on SeaLead Shipping downsizing to expand its Far East-Middle East services.

The Chinese operator has taken over the charters of two ships returned early to Greek owner Danaos by SeaLead.

Linerlytica’s report today notes the 10,114 teu Express Berlin joined CULines on Friday in Nhava Sheva, for a positioning trip to China after being stranded in India since 16 March.

And yesterday, CULines took the 6,758 teu Racine for an ad hoc China-Middle East extra loader trip to Khor Fakkan, after it had been idle since 9 March in North China.

Both ships had been deployed on SeaLead’s Far East-Middle East MEGA service, suspended following the closure of the Strait of Hormuz.

The US/Israel-Iran conflict, as well as sanctions on several SeaLead-chartered vessels due to perceived links to the Shamkhani family of Iran, has hobbled the Singapore-based operator’s business, which is centred on liner shipping routes to the Persian Gulf. This gave CULines, which has diversified its focus from intra-Asia routes to the Persian Gulf, an opportunity.

Charter rates have continued to strengthen since the start of the war, with carriers pouncing on any open tonnage, especially with very strong demand to the Red Sea and outer Arabian Sea ports where freight rates are very lucrative, as shown by CULines’ recent moves to snap-up former SeaLead tonnage.

Also building on its Persian Gulf presence is CULines compatriot Zhonggu Logistics. Originally a coastal container carrier, recent years have seen Zhonggu venture into intra-Asia and regional routes.

Zhonggu has upgraded its China Red Sea Express (CRX) service, launched in October with just three vessels. Now six 1,700-1,900 teu ships are deployed, with calls at Ningbo, Nansha, Aden, Sokhna, Aqaba, Jeddah, Ningbo. CRX turns in eight weeks, with gaps being filled with slots on Sea Legend Shipping’s Red Sea service.

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