The Red Sea crisis and its impact on containership deployment
The impact of the Red Sea crisis on containership deployment trends – after a wave ...
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OVP Shipping, a China-based Russia-focused liner operator, has launched the first deepsea service from China’s port of Nantong.
Last week the 2,456 teu OVP Aries, loaded with 42 containers, left Nantong for Shanghai, Zhoushan and Guangzhou and is expected to arrive, via the Red Sea, at Egypt’s El Dekheila Port on 11 December.
OVP says the SPB service will be covered by four feeder vessels, with the other ships being Chang Sheng Ji 8, Dong Cheng Lan Tian and Hua Xiang 936. For now, sailings will be fortnightly.
With mainstream shipowners avoiding calls at Red Sea and Russia, niche operators have had to turn to Chinese vessel owners for tonnage.
Similar to the situation in Russia, mainline operators have mostly avoided sailing through the Red Sea to avoid Houthi attacks, opting to detour round the Cape of Good Hope. Niche players like OVP and Sea Legend Shipping were quick to fill the vacuum.
Officials at the Nantong branch of China’s Maritime Safety Administration (MSA) said if response to the SPB service was good, sailings would be increased to once a week.
MSA said: “The opening of foreign trade ocean routes will provide new logistics channels for enterprises in Nantong and its surrounding hinterland, and continue to empower local economic development.”
Nantong is traditionally a transhipment hub in the Yangtze River Delta, but the opening of the Nantong Lvsi Terminal in 2022 resulted in some intra-Asia connections to Japan and South Korea.
In the first half of the year, Nantong processed 1.26m teu, up 45% on H1 23. Since March, the three berths and 10 quay cranes in the port area have been operating at full capacity. In 2023, Nantong handled 2.04m teu, down from 2.24m teu in 2022. A rebound in full-year volumes is expected this year as Cosco has expanded services to Nantong.
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