Five shipping lines, including Asia’s largest China Cosco Holdings (601919.SHA, 1919.HKG), have formed a pact to share resources on Europe-Asia routes as cargo rates fall in the face of overcapacity, Bloomberg reported. The other four companies are Evergreen Line, Hanjin Shipping (117930.SEO), Yang Ming Line and Kawasaki Kisen Kaisha (9107.TYO). The partnership will help avoid redundant port calls and reduce transit times, Hanjin Shipping said in a statement released Wednesday. The five shipping lines will be able to carry up to 13,000 20-foot containers (TEU) to Europe in about 12 weeks. Six other shipping lines, including Neptune Orient Lines and Hapag-Lloyd AG, have already formed a similar partnership. Shipping rates may rise as a result of the partnerships, according to investment bank RS Platou Markets AS. The spot rate for shipping one TEU has fallen 62% this year to US$536 last week.
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