Shipping conglomerates unite to weather industry downturn

China's two major shipping conglomerates have formed a strategic partnership, seen as a move to retain market share amid a persistent downturn in the industry.

China Ocean Shipping Co and China Shipping Group announced on Thursday they have reached a cooperative agreement. The resource-sharing alliance covers areas of shipping, terminal operation, logistics, shipbuilding and ship repair.

The agreement will help the two companies achieve advantage complementation and better prepare for industrial changes, said the COSCO Group in a statement on its homepage.

The Baltic Dry Index, a key indicator in the global shipping market for transporting dry bulk goods such as iron ore, coal and grain, tumbled more than 45 percent in the past month, as of Feb 7, according to yahoo news.

"International shipping magnates tend to form alliances during downturns to contend for market share, so it will be important for Chinese shipping companies to take the initiative and retain their market share," an analyst told Beijing Business Today.