News / Interasia Lines expands network to capitalise on trade boom

Photo: © zapperSiR

Taiwanese regional carrier Interasia Lines continues to ramp up operations out of India to capitalise on the inbound intra-Asia trade boom.

The Taipei-based liner has introduced yet another loop linking the Far East to the east coast of India.

The weekly CI9 [China-India Service 9] has a rotation of Nansha-Shekou-Laem Chabang-Port Klang (West Port)-Chennai-Port Klang (North Port)-Nansha, deploying 2,500 to 2,800-teu capacity vessels, with the first sailing planned for 5 December.

“The new service further enhances our regional network coverage between South China, South-east Asia and East India,” the carrier said.

The move complements Interasia’s recent vessel-sharing agreement (VSA) participation in a joint loop with Wan Hai Lines, Evergreen and RCL, which has a rotation of Cat Lai Port (Ho Chi Minh City)-Laem Chabang-Singapore-Port Kelang-Chennai-Visakhapatnam-Port Kelang-Singapore-Cat Lai.

Reflecting its high appetite for growth, Interasia in August ordered six 2,900-teu vessels, with provision for another two, from Jiangsu Yangzijiang Shipbuilding in China.

Meanwhile, Chennai has emerged as a focal point for intra-Asia calls over the past decade as import volumes that mainly thrive on regional ocean networks have gained steady pace, due to rapid industrial development. Most of India’s automobile and electronics manufacturing plants are located in and around Chennai.

To put that dynamic in better perspective, Chennai port handled 91,500 teu of imports in October, compared to 79,000 teu of exports, while fiscal year-to-date (April-October) port volumes stood at 1.12m teu and 975,000 teu, respectively, according to industry data.

Interasia is not the only regional liner trying to fish in this buoyant pond. Other predominant intra-Asia lines, such as Cosco, Wan Hai, RCL and Evergreen, have also expanded their networks, along with budding Chinese carriers.

Hong Kong-based SITC also recently opened a Far East-East India loop (FIE), boosting its market profile, on a rotation of Xingang-Qingdao-Shanghai-Ningbo-Shekou-Chennai-Visakhapatnam-Haldia-Yangon-Ho Chi Minh City-Incheon. A fleet of six 2,400 teu ships has been deployed on the weekly 42-day round-trip voyage, industry data shows.

Ocean rates on Asia-India inbound trades have been strong and stable, compared with other tradelanes, industry data shows. For example, Shanghai-Chennai spot rates have seen no noticeable correction month on month, averaging $850 per teu and $950 per feu, which are even higher than the freight yield mainliners have had on Indian bookings to North Europe.

“Given that significant capacity has already been consumed in other markets, including west coast India, east coast India becomes the natural choice for additional tonnage deployment, as it can still provide easy access to the South-east Asia markets also in its rotation,” Raju Anthony, COO of Mumbai-based Abrao Group, told The Loadstar.