Ningbo shipper defies global price surge

A vessel operated by Jihang Shipping. [Photo/Yongpai app]

Amid escalating tensions in the Middle East, a Ningbo-based shipping entrepreneur is defying industry norms by refusing to raise prices on cargo already at sea.

As global shipping giants like Maersk and Mediterranean Shipping Company increase rates in response to escalating risks in the Red Sea, Zhu Chuanshu, founder of Ningbo Jihang Shipping, has taken a different approach. In a public video, he pledged that all in-transit shipments would not face any additional charges, despite surging operational costs.

"Foreign trade companies are already under pressure. We can't make things worse," Zhu said.

The decision comes as fuel, insurance and security costs continue to climb, with many vessels rerouting to avoid high-risk areas. For most of the industry, passing these costs on to customers has become standard practice.

Zhu's commitment was soon put to the test. One of his vessels, carrying more than 120 containers, was unexpectedly stranded in India after a planned transfer in Dubai fell through due to sudden port restrictions. While partners suggested charging clients for the additional costs, Zhu chose to absorb them.

"We sent our own ship to pick up the cargo. We covered all the expenses without charging clients a cent," he said.

That single operation cost the company more than $300,000.

Zhu said his confidence comes from decades of hands-on experience and a business model built around owning and operating his own fleet, giving him greater control during disruptions.

"Money can always be earned again, but once trust is gone, a company cannot survive," he said.