CSA said in an open letter on 10 July that it found some shipping companies established by cargo owners have been swiftly expanding its operating capacities, posing serious competition to the already weak shipping market.
Presently, the global shipping market is shadowed by severe overtonnage, and the added competition from the cargo owners will only stress the market further, CSA asserted.
The Beijing-based association has filed a proposal to China's ministry of transport on managing the scale of cargo owners' shipping units in order to prevent further collapse of the shipping market.
In October 2011, the ministry of transport had dictated that a cargo owner is only allowed to form one joint venture shipping company.
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