Singapore-listed Samudera Shipping Line has initiated a fixed weekly container service from Singapore to Shanghai, it was announced yesterday.

Three vessels with an average capacity of 650 TEUs (20-ft equivalent units) will ply the route calling at Singapore, Port Klang, Hongkong and Shanghai.

Samudera's chief executive officer, Randy Effendi, said China is a dynamic market that is expected to flourish with its inclusion into the World Trade Organisation.

In 1999, Shanghai's throughput increased by some 37 per cent to 4.2 million TEUs, making it the seventh busiest container port in the world. By the end of 2000, throughput is expected to grow by 25 per cent to 5.2 million TEUs.

During 1999, container volume between Singapore and Shanghai grew by more than 50 per cent, according to Samudera. By entering this market, Samudera has effectively extended its feeder shipping network from the Indian subcontinent and South-east Asia into West Asia, enabling it to take advantage of this expanding container trade.

Saut Hutauruk, executive director of Samudera, noted the service is licensed by the Chinese government: "This is a plus point as we will not have to rely on other company's licences, and this will help us to remain committed to the market."

The north-bound voyage commenced on Sunday, with the south-bound following from today.