New Far East consortium rumoured

Alan Peat RUMOURS ARE flooding both the local and Taiwanese shipping markets about a new SA-Far East consortium about to take to the seas. According to market sources, three - or possibly four - lines will form a new ship-sharing agreement on the trade. The names include the two Safari members, K-Line and MISC, (who will be on their own when this ship-sharing agreement ends on March 31) and the Taiwanese-owned Wan Hai Line, a major carrier around the Asian basin. The possible fourth member of the consortium, according to some, is the Pacific International Line (PIL). However, while discussions might be going on at the Asian end of the business, there is little solid information yet available from the SA players. According to both Mike Atter, m.d. of Rennies Ships Agency (whose subsidiary, Freightmarine, are agents for K-Line) and Dave Orchard, line manager for MISC at agents Bridge Shipping, their two principal lines intend to continue on the SA trade - regardless of the outcome of this rumoured consortium. Both also indicated that something was afoot at their lines' HQs (whether related to this, or an entirely different matter, was not known) - and that an announcement was due before month end. Meantime, Kieran Sullivan, m.d. of Foreshore Ships Agency (agents for PIL), admitted having heard the rumour, but could not comment further. Wan Hai has no local representation - as yet - and no information is available on their thinking at this time. However, other commentators who talked to FTW agreed that such a move made sense - adding together lines' volumes on the trade to get better economies of scale on ships' capacity, and possibly having Wan Hai's inter-Asian muscle as a feeder network at the other end of the trade. As the other two members of Safari - Safmarine and Maersk Sealand - have already tied in with MSC to form a new Safari as soon as the old one disbands, it also makes sense for K-Line and MISC to follow a similar consortium idea, FTW was told.