Hainan PO Shipping opens in Singapore, offers China SE Asia-Mideast service

CHINA's new shipping line, Hainan PO Shipping (POS), which started in 2008, will add to its existing transpacific and Australia services, a new Intra-Asia loop between Tianjin and Jebel Ali.


The news came with the announcement that the company, with its operational base in Shanghai, was opening a joint-venture office in Singapore, the P O Shipping (S) Agency Pte Ltd (POSA SG) at 20 Harbour Drive, #05-05A, PSA Vista, in collaboration with Global Putra International (GPI-G), an international total logistics service provider.


In addition to transpacific loops to the US and strings to Australia's major ports, POS has now launched a new service, the CME2 (China-Middle East Express II Service) to Jebel Ali (CME II).


The CME2 rotation will be Tianjin, Qingdao, Shanghai, Ningbo, Shenzhen-Shekou, Singapore, Port Kelang, Jebel Ali, Port Kelang and back to Tianjin taking 42 days with two other consortium partners.


"With a transit time of only 10 days from Singapore to Jebel Ali, this POS offering is highly competitive and reliable and represents our foray into a new market, the Middle East," said a company statement.


Heading POS as executive chairman is Capt Li Kelin, formerly head of Cosco Container Line and China Shipping Group. Chen Jingde, former president Cosco (Hong Kong) Group Ltd, is executive director and president. Singapore joint venture partner is Sumadi Kusuma, head of GPI-G.


With the opening of the new office, POSA SG becomes an integral part of POS plan in South East Asia and will support POS in development of shipping and related businesses.


Over the last two years, the group has come to own and control some 18 containerships with a capacity of 42,622 TEU, making it the 38th largest container shipping like worldwide and the fourth biggest in China, said a company statement.


Horizon gets lenders to relent, but for 2.5pc more interest.


HEAVILY fined Horizon Lines, America's biggest carrier, got a break from lenders, who waived rights in an expected default by easing the terms of their lending agreements after the disgraced company pleaded guilty to price-fixing in the Puerto Rican trade.


Facing a US$45 million fine, Horizon is seeking to refinance long-term debt and persuaded lenders to waive default rights brought about by the unprovisioned expense of the fine.


Federal sentencing guidelines called for a fine of $336 million to $672 million, based on Horizon's estimated $1.4 billion in Puerto Rico freight revenue from 2002 to 2008, reports Newark's Journal of Commerce. Horizon also faces suits from rivals Sea Star and Crowley Maritime, which seek compensation for civil antitrust lawsuits from shippers claiming losses from the price-fixing.


Prosecutors said the fine was "the most Horizon could afford to pay without substantially jeopardising its continued viability and its ability to pay restitution".


The lenders' new terms call for Horizon to pay 2.5 per cent more interest on its senior credit facility, which as of December 26, stood at an adjustable rate of 3.29 per cent for a revolver loan and 6.02 per cent for a term loan. The agreement also includes reductions from $50 million to $20 million in Horizon's letter of credit commitment and from $20 million to $5 million.


"We very much appreciate the support of our lender group and recognise that the amended credit agreement is a vote of confidence in the future of our company," said Horizon chief financial officer Michael Avara.


Stephen Fraser, who replaces retiring Chuck Raymond as president and CEO this week, said: "We are confident that these discussions will result in a financially stronger company that is better positioned for the long term," he said.
(Source:http://www.schednet.com)