CHINESE container shipping companies have improved their operations with the upturn in the global container transportation market, the mainland's Ministry of Communication commented in one of its report on shipping development.

It said that with globalisation, mainland shipping companies have changed their operating strategy focusing more on capacity control and the stability of freight rates, coupled with the increasing of chartered vessels.

On container transportation, the report said, Chinese shipping companies were now paying more attention on co-operation and communication, and capitalising on their resources by sharing slots. In the area of operation, the Chinese companies are reported to have changed their attitude from being "big and complete" to becoming "professionals" by focussing on core business and by putting more effort on developing integrated logistics services.

The report cited the examples of the nation's three largest Chinese shipping companies - Cosco, China Shipping and Sinotrans to highlight the evolution of shipping companies in China.

In the case of Cosco, which is the largest of the three, the reported said the company has established a global container transportation network operating more than 20 main international routes covering more than 100 ports in Europe, American, Asia, Africa and Australia. The company has also employed more than 1,000 agents throughout the world.

Up to the end of last year, Cosco operated 114 vessels, with a total capacity of 254,000 TEU of which 23,000 TEU were provided by chartered vessels, representing 9 per cent of the fleet's total capacity.

Second-ranked China Shipping, the report said, increased its capacity to 200,000 TEU last year. It handled 3.4 million TEU in the same year, representing an increase of 22.7 per cent over the year before.

The report also pointed out that China Shipping carried out changes in its services to Europe and Australia by replacing smaller vessels with larger ones to cope with the demand.

Sinotrans, China's third largest shipping line has also changed its strategy by focussing on the Asia and Pacific region markets. By the end of 2003, the company operated 83 container vessels with a total capacity of 38,000 TEU. Sixety-nine of them were charted, the report added.