Grand China Shipping expands from intra-Asia into transpacific

GRAND China Shipping, a subsidiary of the Hainan province`s HNA Group, has started its first transpacific service, the SPX, which calls at the ports of Hong Kong, Shenzhen, Ningbo, Shanghai and Long Beach.

The service deploys five 2,700-TEU ships, with the Red Strength undertaking the maiden voyage from Shanghai and is scheduled to arrive on April 26 at Total Terminals International at Pier T in Long Beach after a 12-day crossing, reports the American Shipper. It said the carrier has an option to call at the US west coast port of Oakland at a later date as well.


Grand China vice president Gary Luo said shipping line plans to split the SPX service into two loops and to add more ships to call at ports in both north and south China.


The carrier`s ambitions for expansion do not end there as it also aims to enter the Pacific northwest trade and launch an all-water loop to the US east coast by next year and also offer intermodal service to inland points, the report said.


"This is the general direction we are going," said Mr Luo.


He also said the company will first target non-vessel operating common carriers before attempting to attract business from cargo owners, saying that its maiden transpacific voyage was fully booked.


Mr Luo said Grand China Shipping expects to sell its transpacific service to existing customers of its intra-Asia and domestic services, adding that the company intends to put into place a sales and marketing team in the US.


Grand China is part of the Grand China Logistics Group which operates 94 ships and has total assets of US$6.9 billion. In addition to container shipping it is engaged in dry bulk and tanker shipping; owns cargo carrier Yangtze River Airline, two shipyards and three logistics companies; and operates marine terminals in Jingjang, Yangpu and Changshu, the report said.


Grand China Logistics manages the transportation and logistics business of HNA Group, a conglomerate that posted revenues of $7.9 billion in 2009 and is the parent of Hainan Airlines and a several other regional carriers. HNA also has interests in airports, hotels, tourism, retailing, finance and catering.


One subsidiary, Tianjin Marine Shipping, owns 19 containerships with total capacity of 20,000 TEU, but aims to expand its fleet capacity to 250,000 TEU within five years. The shipping line serves the trade between China and Japan, Korea, Taiwan, Vietnam, the Philippines and Hainan Island.