Shanghai Cabotage Liberalised: 'Effect Limited' Say Analysts

MarineLink.com
Monday, November 18, 2013
Image courtesy of APM

Cabotage regulations for cargo moving to and from Shanghai have been formally liberalised. Whilst this should be positive for the port’s transhipment activity, the effect is likely to be limited, concludes a recent Drewry Maritime Research analysis, excerpted as follows:

As a by-product of the establishment of the new China (Shanghai) Pilot Free Trade Zone concept, foreign-registered vessels are now officially able to carry containers between Shanghai and other Chinese ports – albeit that the vessels still have to have Chinese owners. Previously the formal position was that this could only be done by Chinese owned, Chinese flagged vessels thereby preventing the use of, amongst others, COSCO’s and CSCL’s foreign flagged ships – in theory.

This apparent change to the rules has fuelled speculation in some quarters that Shanghai’s transhipment activity could increase significantly as a result. However, the reality is that the “relaxation” of the cabotage rules actually only brings formal regulation to what was already happening in practice. In addition, the China (Shanghai) Pilot Free Trade Zone, whilst new, only adds to existing Free Trade Zones in Shanghai’s Yangshan port and Pudong airport – in other words the Free Trade zone concept is not new in Shanghai.

At present, Shanghai does have a significant amount of transhipment activity. It is not an easy function to measure as official “transhipment” statistics include a very substantial volume of river barge traffic handled at the port, but focusing only on seagoing-vessel to seagoing-vessel transhipment, Drewry estimates that this was around 17% of the port’s total throughput in 2012. Due to Shanghai’s sheer scale, this equates to a large absolute number – 5.5 million teu.

The recent formalisation of the cabotage laws will have a positive impact on this, but it is likely to be limited. This is partly because there is little change to what already happens in practice but more importantly because there are other, wider factors at work which mean that Busan, the leading transhipment hub in the region and a major port for serving Chinese Bohai Rim feeder ports, is likely to remain dominant.

Drewry's view
The establishment of Shanghai’s Free Trade Zone (FTZ) and the associated relaxation of cabotage rules should have a positive impact on the port’s seagoing-vessel to seagoing-vessel transhipment activity, but the effect is likely to be limited. Busan’s dominant role in the region as a hub serving Northern Chinese feeder ports looks set to remain, at least for the time being.

Source: Drewry Maritime Research
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

113 Migrants Drown in Libya-Italy Weekend Transits

An estimated 113 people died in four shipwrecks between Libya and Italy at the weekend as the crossing becomes the preferred sea route for migrants to Europe, the

Crowley Acquires Ace Fuels Assets in Anchorage

Anchorage-based Crowley Fuels yesterday completed an asset acquisition of the aviation fuels business of Ace Fuels, LLC, a fixed base operator (FBO) headquartered

USCG Sets 2nd Round of Hearings for El Faro

The U.S. Coast Guard will conduct a second round of public hearings May 16-27 for the Marine Board of Investigation into the loss of the U.S.-flagged cargo ship El Caro, and its 33 crewmembers.

Ports

Adani Ports profit Up

Adani Ports and Special Economic Zone Limited (APSEZ), India’s largest port developer and part of Adani Group, has announced the financial results for the fourth quarter and year ended March 31,

Libya Eastern Oil Company Blocks Tanker Loading Crude for Tripoli Rival

An oil company set up by Libya's eastern government is preventing a tanker from loading a cargo for its Tripoli rival, the National Oil Corporation (NOC), officials said on Tuesday.

CRMG Cranes Arrive in Mersey for Liverpool2

First six of 22 to be installed at £300m terminal; arrival marks end of 13,730 mile (11,930nm) journey from Nantong, China   The first six cantilever rail-mounted

Container Ships

Container Market - Between a Rock and a Hard Place

The pain of the current container market downturn extends beyond carriers, says Drewry's Container Insight Weekly.    Some independent ship-owners are faced

UN to Start Inspecting Commercial Shipments to Yemen

The United Nations will start inspecting shipments to rebel-held ports in Yemen in a bid to boost commercial imports and enforce an arms embargo, the world body said on Tuesday,

Maersk Line Names Hahnemann Chief HR Officer

On August 1, 2016, Ulf Hahnemann, current Vice President for Strategic Programs at Mars Inc. will join Maersk Line as Chief Human Resources Officer (CHRO) and be

Logistics

Maersk Profit Plunges

Danish shipping and offshore energy conglomerate Maersk Group reported its profit at US$ 224 million for the first quarter of 2016, a drop of 86 percent compared to $ 1.

BIMCO: Dry Bulk Recovery Will be a Multi-Year Effort

In an exclusive interview with “Akti Miaouli” newspaper, BIMCO Chief Shipping Analyst, Peter Sand, provides insight into the markets for dry bulkers, tankers and

Container Market - Between a Rock and a Hard Place

The pain of the current container market downturn extends beyond carriers, says Drewry's Container Insight Weekly.    Some independent ship-owners are faced

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pipelines Pod Propulsion Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0873 sec (11 req/sec)