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 Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

MNZ Inspectors Board Fishing Vessels Off South Island

A joint operation by Maritime New Zealand (MNZ) and the New Zealand Defence Force – Operation Moana – has seen 16 fishing vessels operating off the west coast of

Bahri Appoint Two Board Members

The National Shipping Company of Saudi Arabia (Bahri) announces it received on 21/11/1435H corresponding to 16/9/2014G a letter from Saudi Aramco Development Company (SADC) appointing Mr.

Ports

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

MM&P Hopes to Pad Ranks with Brown Water Mariners

New York Harbor Tug Boat Captains and Crews, Staten Island Ferry Workers, Circle Line and Other Tourist Boat Crews Vote on Joining New Union Uniting with the International Organization of Masters,

Second Sailing Added to Cleveland-Europe Express

The Port of Cleveland and Amsterdam-based Spliethoff Group announced today their mutual intent to add a second monthly vessel to the Cleveland-Europe Express (CEE),

Container Ships

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

Maersk Sees US Approval of Shipping Alliance as Formality

U.S. regulatory approval of a proposed shipping alliance involving AP Moeller Maersk should be a formality, the Danish company's chief executive said on Wednesday.

Cargo Container Security Alliance Formed

SC-integrity, Inc. (LoJack SCI) and Contguard Ltd. announced a strategic alliance designed to provide their customers with security and real-time visibility of

Logistics

Second Sailing Added to Cleveland-Europe Express

The Port of Cleveland and Amsterdam-based Spliethoff Group announced today their mutual intent to add a second monthly vessel to the Cleveland-Europe Express (CEE),

Finland Grants Support to Three Small LNG Terminals

The Finnish government granted 65.2 million euros (84.22 million US dollar) in subsidies to build three small liquefied natural gas (LNG) terminals to cut on use

LQT Delivers Accommodation Facility and Helideck in Gulf of Mexico

LQT Industries , a full-service provider of accommodation facilities, design-build construction services, and support services to the oil and gas industry, has

 
 
Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1636 sec (6 req/sec)