Chinese domestic container carrier Nan Tsing Container Lines has ceased operations of its entire shipping fleet as it struggled with mounting debts, says local media.
This leaves more than 40 containerships operated by the shipping lines have been detained at several major ports in China. It has more than 10,000 containers held at major ports in China in light of its suspension of operations.
At Shanghai Yidong Container Terminal alone, 1,367 containers from Nan Tsing’s ships have been detained following an order by a Shanghai court on 2 September.
Local media reported that tens of thousands of containers transported on Nan Tsing’s 40 over ships have been detained at the ports, and cargo owners have been coming forward to pay to get their goods out.
Nan Tsing Container Lines started as a state-run shipping company and was on of verge of bankruptcy in 2008.
It survived after it was acquired by Zhejiang Tingyu Group, a multi-sector group based in Wenzhou and Pan Peicong (pictured), president of Tingyu Group, was installed as president of the company.
At one stage Nan Tsing had a fleet of more than 140, although it had since been downsized to about 40 vessels.
The shipping company had set up hubs around the country to expand its coverage. From 57,000 TEUs in 1998, Nan Tsing was carrying more than 600,000 TEUs by 2008 when it was one of the largest domestic lines in China with a fleet of more than 140 vessels, but the ships were steadily disposed of as the carrier downsized.