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
Toyota and Nissan pair up with Tencent and Baidu for China AI arms race
China's largest auto show displays all-electric future, local brands dominate
Toyota hits record annual output, sales on robust demand
Nissan, Mazda roll out new models for China as they aim for comeback
VinFast chief plans to invest US$1 billion more from his fortune in EV maker
XPeng CEO says its software, AI upgrades to enter ‘super fast cycle’