According to Bloomberg, the competition in maritime trade between China and Peru is intensifying following the recent inauguration of a significant Chinese-owned port along Peru’s Pacific coastline. MSC Mediterranean Shipping has initiated a weekly direct shipping service from Ningbo, China to Callao, located just outside Lima. This development comes on the heels of COSCO Shipping’s completion of its $1.3 billion port in Chancay last year, which also established a direct route to Shanghai.
As the largest container shipping company globally, MSC is poised to enhance trade efficiency alongside COSCO, which ranks fourth in the industry. Currently, these two routes complement each other; one takes 21 days to reach China while the other arrives in Peru within 23 days. This growing connectivity highlights the increasing significance of bilateral trade between these nations-a trend that has raised concerns among U.S. officials.
China stands as Peru’s primary trading partner and is notably the leading buyer of its top export-copper-while Peruvian consumers are increasingly purchasing various Chinese products ranging from textiles to electronics and automobiles.
“Historically, imports from China would first arrive at major markets like Mexico before making their way down through Central America and Colombia,” explained Fernando Fauche, chief commercial officer at APM Terminals Callao. “This process typically took around 40 to 45 days.”
The Chancay facility was designed primarily to reduce transit times between these two countries-a goal underscored by President Xi Jinping during its inauguration at last year’s Asia-Pacific Economic Cooperation summit held in Lima. However, MSC’s new service indicates that Chancay’s influence extends further than anticipated; it compels other ports like Callao to enhance their connections with Asia despite previous assumptions about profitability due to Peru’s smaller market size.
The proximity of Callao and Chancay-merely 50 miles apart or just a few hours by truck-facilitates this burgeoning trade network effectively.
“We recognized it was time for a direct service from Asia,” stated Gonzalo Santillana, managing director for MSC in Peru. He noted that they have deployed 14 vessels for this initiative and expressed confidence that demand will be robust as evidenced by full ships already operating on this route.
Currently unloading goods at Callao before heading southward into Chile for cherry exports destined for Asian markets during harvest season over the next few weeks is part of their operational strategy. Santillana anticipates launching additional direct routes post-harvest aimed specifically at supporting Peruvian exporters such as fruit producers who stand to gain significantly from expedited shipping options.
“This marks just the beginning,” Fauche remarked optimistically about future developments in logistics within South America. “Peru is set on becoming a logistical hub with an expanding array of services directly connecting us with Asia.”
