China Launches Express Container Service to Germany
The first containership in a new express service between China’s Ningbo port and Germany arrived at the terminal in Wilhelmshaven as part of an effort to build China’s maritime trade routes. The launch of the express service comes as the new Maersk-Hapag-Lloyd cooperation is also set to launch highlighting its service reliability on its first routes from Asia to Europe.
A little-known Chinese company, Zhejiang Seaport Logistics Group, is the face of the operation which has been named Kawa Shipping and the Kawa Express. Reports indicate it was conceived by officials in Shanghai and may have financial support from interests in the United Arab Emirates and Turkey. Zhejiang Seaport Logistics Group launched in 2023 offering a feeder service to the UAE.
The first vessel on the new express route was named Kawa Ningbo. Built in 2002, she is a 2,495 TEU containership that was run by Wan Hai. It was acquired by Chinese interests in July 2024 and registered in Panama. The vessel is 30,240 dwt and 656 feet (200 meters) in length.
The managing director of Kawa Shipping, Maud Lau, explained the rationale behind the new service. "Many Chinese companies, especially those in high-value sectors like automotive, lithium batteries, and solar energy require faster delivery time." The announcement refers to the service as part of China’s “Belt and Road” initiative and a commitment to “strengthening China-Europe ties.”
During the welcoming ceremonies in Wilhelmshaven on January 24, the chairman of the Zhejiang Seaport Logistics Group, Tao Chengbo, said "We are delighted to welcome the first ship of the new CEX service, the Kawa Ningbo, which started its sea voyage in Ningbo on December 30, 2024, in Wilhelmshaven on time.”
According to the Chinese what makes this new service “remarkable” is the reduced travel time between Ningbo and Wilhelmshaven. The ship is traveling the 13,800 km route (12,000 nautical miles) route in just 26 days versus the normal shipment time of 45 days for the point-to-point service. They are operating the route without intermediate stops saying the faster service will be a “game changer” for time-sensitive, high-value goods.
One advantage the Chinese have is the vessel is routing through the Red Sea and Suez Canal taking advantage of the Houthis' “safe passage” given to Chinese ships and the newly announced suspension of attack after the Gaza ceasefire. The executives pointed out during the ceremonies that many vessels are diverting taking the longer route extending travel times to 50 to 60 days.
The strategy calls for expanding the initial monthly sailings to bi-weekly in the second half of 2025. The executives said they plan to also move to a larger, 5,000 TEU vessel during the summer. They also look to add a transshipment service from Wilhelmshaven to the East Coast of the United States.
The rollout of the Chinese service comes as Maersk prepares to begin the transition to its new route system on February 1. Maersk highlights a “leaner” approach for its main line loops cutting traditional routes from seven port stops or as many as 14 to 15 stops down to just three between Asia and Germany. The new routing will be supported by dedicated shuttles with right-sized capacity for the feeder ports and moving containers to the hubs. While Maersk is not promoting it as an express service and says transit time will remain constant, it promotes the Gemini Cooperation as providing far greater service reliability and ultimately on-time schedule reliability of greater than 90 percent.
With small vessels, the Chinese service is positioned as a niche option. The United States Trade Representative recently accused China of targeting shipping services and leveraging the government for unfair competition as it seeks to dominate the shipping industry.