Background
A key part of optimising the complex network of global shipping routes—and thereby reducing both costs and the carbon footprint of the shipping industry—is the ability for shipping companies to conduct international cargo relay.
Historically, this practice has only been permitted in China for vessels operated by wholly Chinese-owned companies, even when the cargo’s final destination is overseas. This created a market access barrier for the foreign liner shipping community in China, resulting in higher costs, inefficiencies, and greater carbon emissions.
Result
For over two decades, the International Liner Shipping Sub-working Group included the recommendation to allow international cargo relay in its annual Position Paper and maintained regular communication with relevant authorities to advocate for reform.
On 18th November 2021, the State Council announced that until 31st December 2024, foreign-, Hong Kong-, and Macao-flagged vessels are allowed to carry out international cargo relay at Yangshan Port in Shanghai for containers originating from or destined for Dalian, Tianjin, and Qingdao.
Impact
- Reduced transit times and fuel consumption in international shipping;
- Lower operating costs and increased efficiency for foreign carriers;
- Significant breakthrough in market access and regulatory reform.
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