Shipping service between ports of Shanghai, Liverpool helps both traders amid headwinds

A year ago, when Allseas Global Logistics started its Shanghai/Ningbo-Liverpool direct shipping route known as China Xpress, the service was a temporary move made to support supply chains that had been hampered by the COVID-19 pandemic.

The company never expected at the time it would end up operating vessels of its own on the route.

But due to growing demand driven by booming bilateral trade, the British freight company has now leased six vessels, and plans to expand even more.

The inaugural call of Allseas Pioneer, the company's first freight ship in its fleet, carrying 1,631 containers of Chinese goods, arrived at the Port of Liverpool on Friday, marking another fruitful year of Sino-UK trade for the company.

Having set off from the Port of Ningbo, Zhejiang province, the ship, which can carry goods including furniture, construction materials, garments, and other daily necessities, will help stock stores across the United Kingdom.

China Xpress is different from many other shipping lines from China that call at southern UK ports, or those that tranship via Rotterdam, which can add an extra 10 days to the journey, said Darren Wright, founder and managing director of Allseas.

As the only shipping line that goes directly to Liverpool from China, which then feeds directly into the North of England region that accounts for 30 percent of the UK's trade, the route saw more than 60,000 containers move in and out of Britain during the past year, and supported more than 200 local businesses, according to Wright.

The direct route linking China and the North of England was welcomed by anxious Chinese suppliers who had faced backlogs in their warehouses because of disruption to other routes. It was also welcomed by UK stores eager to fill their shelves during the shortages created by the pandemic.

'Man of the moment'

During a late April event celebrating the first anniversary of China Xpress, Wright was referred to as the "man of the moment" by Zheng Zeguang, China's ambassador to the UK, who attended the ceremony as a part of his first formal visit outside London.

While congratulating the company on the anniversary of the trade route, the ambassador described it as "icing on the cake" of China-UK trade cooperation.

Wright said: "Traditional carriers were faced with equipment being stuck in ports around the world due to the pandemic. Vessels out of schedules, port closures, congestion and reduced labor were all major influences in the supply and demand imbalance.

"Whilst at the same time in the UK and Europe, consumer demand for household goods and PPE (personal protective equipment) products was at an all-time high, with people now forced to work and shop from home, and online purchases had increased to record levels."

The cost of shipping was also suddenly 10 times higher, he added.

Business was by no means easy for Chinese suppliers as well, according to Johnny Cheung, vice-president of Fastic Group, the local partner of Allseas Global Logistics based in Shanghai.

"The order has been placed, money has been paid, but the problem was how to get the cargo to the UK market," Cheung said. He added that when suppliers came to him, many were seeing their cargo piled up at factories and on docksides, waiting for transport.

To ease the problem, the company chartered three vessels for the direct China-Liverpool route, and word soon spread.

"Our transit time is two weeks quicker than anyone on the market," Wright said.

Cheung added, "Time makes everything in this industry, even one or two days can make a big difference."

Now, the company's signature direct shipping line provides direct service every 10 days, with vessels capable of carrying up to 1,700 containers port-to-port, from cities including Ningbo and Dongguan, Guangdong province, to Liverpool in 30 days, according to the company.

Phenomenal demand enabled the company to employ more than 25 new workers in the UK and a similar number in China.

This year, they set up Allseas Shipping Company, a branch based in the UK, to enable growth of the shipping line service, with plans to cooperate with more ports in China.

The fast growth of the shipping line fits the needs of companies involved in trade between China and the UK against the backdrop of the pandemic and proves the potential and resilience of commerce between the two countries, the ambassador said at the ceremony.

'A completely different world'

Liverpool has long-established trade and shipping links with China, particularly with Shanghai. In 1865, Liverpool shipowner Alfred Holt started the Ocean Steam Ship Co, better known as the Blue Funnel Line, which began trading with China at a time when Chinese tea and silk were the UK's main imports.

The company then employed large numbers of Chinese mariners, who were the foundation of Liverpool's Chinese community, which is one of the oldest in Europe.

"But now we are in a completely different world," Zheng said.

During the past 50 years, ever since the establishment of ambassadorial diplomatic relations between the two countries, bilateral trade in goods between them has increased from a little more than $300 million to more than $110 billion in 2021.

In May 2021, China replaced Germany as the UK's biggest single import market.

"Products from China that are good value for money have supported the UK in fighting the pandemic and curbing the pressure of rising prices, while famous-brand products from the UK meet the diverse needs of China's huge consumer market," Zheng said.

As a significant maritime center for shipping, Liverpool, a sister city of China's economic powerhouse Shanghai since 1999, has witnessed the rapid growth of UK-China trade cooperation.

The city-to-city relationship saw continuous growth, despite some ups and downs in the China-UK bilateral relationship.

Claudio Veritiero, chief executive officer of Peel Ports Group, owner of the Port of Liverpool, said Chinese cargo through the Port of Liverpool has more than doubled in the past five years, with a total value of $1 billion by 2021.

"The UK is very much up for businesses in the post-COVID and post-Brexit era, and the country is very much facing outward across the world. From the perspective of the Port of Liverpool, we are very keen to be a part of the continued and growing trade flows with our partners," Veritiero said.

Once called the "Second City of the Empire", Liverpool eclipsed even London for commerce in the 19th century.

But, from the mid-1970s, Liverpool's docks and traditional manufacturing industries started to decline, due to the restructuring of shipping and heavy industry. The port then concentrated on regeneration, a process that continues today.

Earlier, before the ceremony to commemorate the shipping route, the ambassador met Lord Mayor of Liverpool Councilor Mary Rasmussen at Liverpool Town Hall, who noted that the city relishes new opportunities to cooperate with China.

She said the city is pushing forward with infrastructure and smart-city upgrades, and seeking to vitalize its manufacturing and shipping center. Cooperation with Chinese cities, including Shanghai, has brought many new opportunities to Liverpool, she said.

"You will never walk alone," Zheng said, borrowing from the anthem of Liverpool Football Club, as he called for closer trade ties, closer people-to-people relations, and stronger links between Liverpool and Shanghai, and between China and the UK.