China shipping merger plan not tackling supply problem

Beijing

CHINA could be creating Asia's biggest container shipping company through a merger of two titans. But the plan doesn't address the central issue confronting the industry for at least five years now: too many ships, with too much cargo space, plying the seas.

Combining China Cosco Holdings Co and China Shipping Container Lines Co would create economies of scale allowing the merged company to compete with bigger rivals such as AP Moeller-Maersk A/S in the race to to export sneakers and home appliances around the world.