Chinese auto makers can now ship 5000 cars per time
The biggest issue for Chinese car makers when exporting to overseas markets was quality, the second was the number of cars they could send at one time. Often it was a couple of cars squashed into a container at jaunty angles, but that is going to be a thing of the past now that Chinese shipping giant, Cosco, have taken command of a roll on roll off car ship specially built for taking cars from one continent to the next.
China Daily explains more:
China’s domestic carmakers now have a new option to ship their vehicles to overseas markets, after a cargo vessel capable of carrying 5,000 cars began operations.The carrier will significantly cut shipping costs and reduce carmakers’ heavy reliance on foreign logistics companies, according to senior executives of China Ocean Shipping (Group) Co (COSCO).
The MV COSCO Tengfei car carrier, which can hold up to 5,000 cars and trucks, departed from Shanghai’s Waigaoqiao port in the Pudong New Area on Saturday. This is the second delivery by this type of vessel following a successful shipment by MV COSCO Shengshi in February.
Designed by the Shanghai Design Institute and manufactured at COSCO’s Zhoushan shipyard south of Shanghai, COSCO Tengfei and COSCO Shengshi will deliver Chinese-made cars to South American countries and carry European cars on the return trip, Han Guomin, chief executive officer and director of COSCO Shipping Co Ltd, told China Daily.
The carrier, 182.8 meters in length, 32.2 meters in width and 14.95 meters in depth, has a deadweight tonnage (DWT) of 14,500. Equipped with three adjustable decks, it can hold cars of different heights.
According to Han, it will take COSCO Tengfei 28 days to reach its destination, Santos in Brazil. More than 4,400 cars made by Chery Automobile Co Ltd, Anhui Jianghuai Automobile Co Ltd ( JAC ), Sany Heavy Industry Co Ltd, and Lonking Holdings Ltd will be shipped in this journey.
Labor and material costs in the Chinese shipbuilding industry are lower than those in Japan, South Korea and European countries, where COSCO previously rented car carriers, so the shipping costs will fall once the company manages its own fleet, according to Han. “In the following years, China is entering a peak season of exporting cars, and the car carriers are built to serve such demand,” said Han. Each of the two ships costs $53 million.
According to Xu Lirong, vice-president of COSCO Group, the company started to develop its own carriers after signing a 15-year car shipping strategic cooperation agreement with 17 domestic carmakers, including Chery , JAC and Chang’an in 2006.
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The carrier will significantly cut shipping costs and reduce carmakers' heavy reliance on foreign logistics companies, according to senior executives of China Ocean Shipping (Group) Co (COSCO). The MV COSCO Tengfei car carrier, which can hold up to
SHANGHAI - China's domestic carmakers now have a new option to ship their vehicles to overseas markets, after a cargo vessel capable of carrying 5000 cars began operations. The carrier will significantly cut shipping costs
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