News / Glass shipper Xinyi uses its own box ship to move product between factories

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, ordered in 2022, was delivered last month and will carry raw materials, semi-finished and finished products between Xinyi’s factories in Malaysia and China.

Xinyi produces glass products for the automobile and construction industries, counting Ford and Volkswagen among its customers. It said having its own ship would enable the company to control its shipping costs amid a resurgence in freight rates.

Vice-chairman Dong Qingbo said: “This route will reduce the cost of material transportation between our domestic factories and Malaysian factories, and greatly improve the efficiency of the supply chain.”

Chinese customs officials are offering expedited clearance for Xinyi Glass cargo and have said the new ship would not spend more than 12 hours in port.

Shippers turning shipping lines was a pronounced result of the pandemic-induced peak. German supermarket chain Lidl started its own container shipping company, Tailwind Shipping Lines, to move goods between Asia and Europe, but it also has external customers.

Malaysia is one of the countries collaborating with China’s Belt and Road initiative and the launch of Xinyi Glass’s self-operated route forms another link between China and Malaysia, which established diplomatic relations 50 years ago.

Deputy director of customs in China’s Shatian district Huang Jing said: “From January to May this year, we have supported Dongguan Port in adding five new routes, including to Ho Chi Minh City in Vietnam and Tanjong Bruas in Malaysia. We will optimise regulatory reform measures to alleviate congestion and to promote the continued development of Dongguan’s export-oriented economy.”

In 2020, Xinyi ordered two 5,000 dwt multipurpose ships from Taizhou Tai Marine Heavy Industry and Equipment. Delivered in 2022, Xin Yi Bo Li 01 and Xin Yi Bo Li 02 can each carry 150 teu on coastal voyages in China.