Zim Integrated Shipping Services Ltd. is expanding its collaborations with other shipping companies in order to cut costs and respond to lower shipping demand. Zim and Grand Alliance have agreed to cooperate in the Trans-Pacific trade in two of the Grand Alliance's routes. They have also teamed up to continue to serve eastern Mediterranean and Black Sea destinations directly from Asia.
Grand Alliance comprises Germany’s Hapag-Lloyd, Malaysia’s MISC Berhad (MYX: 3816)), Japan's Nippon Yusen Kaisha (NYK Line) Ltd. (TSE: 9101) and Hong Kong's Orient Overseas Container Line.
The North Pacific collaboration includes Zim's NWX and PNX routes between Japan, South China, South East Asia to Canada and US Northwest Coast. The agreement will be implemented in two phases. Zim will initially buy slots from Grand Alliance and will terminate its own Asia to Pacific Northwest route (APX). In the second phase, Zim will deploy three new container ships of 8,000-10,000 TEUs (twenty-foot equivalent units). Zim will phase in two of the ships in July 2009 and the third in October 2009. By this cooperation with Grand Alliance, ZIM is improving its service on the Asia- Pacific North trade and commences its deployment plan with the new Mega ships in July 2009.
On the Asia Mediterranean-Black Sea collaboration, the Grand Alliance companies organized a new route with Zim after suspending their own Asia-East Mediterranean-Black Sea route earlier this month. Cargo volumes from Asia to Black Sea countries have collapsed in recent weeks because of the steep economic downturn in the region.
Zim currently operates eight 4,000-TEU container ships on its Asia Mediterranean routes (AMX and EMX), some of which also call in the Black Sea. Grand Alliance will operate on this route through a slot charter arrangement with Zim.
Since the onset of the global crisis, Zim has expanded its collaborations with other shipping companies on international routes. Zim and China Shipping Container Liners Co. Ltd. (HKSE:2866; Shanghai: CN) collaborate on Asia-European routes, and Zim and Swiss firm Mediterranean Shipping Company SA (MSC) collaborate on transporting Israeli agricultural produce to Europe.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2009
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