China shipping merger plan not tackling supply problem
State-owned entities with overlapping businesses in competitive industries seen as next in line for consolidation
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
EV automakers get reprieve in US tax credit rules
Abu Dhabi hub carrier Etihad adds banks to US$1 billion IPO
Luminar to cut nearly 20% jobs as part of restructuring
Chinese share of French EV market slumps after incentives curbed
Ferrari unveils US$423,000 sports car with 1960s bloodline
Airbus called for compensation to take on money-losing Spirit operations: sources