Beijing is running a two-year pilot programme to open China’s coastal container trades to international liner operators.

Under the People’s Republic of China’s International Ocean Shipping Regulation non-Chinese international operators are not allowed to operate on the shipping business between Chinese ports.

The regulation clearly states: “Foreign international shipping operators may neither operate the shipping business between Chinese ports, nor operate the shipping business between Chinese ports in disguise by such means as using the rented Chinese vessels or shipping space or exchanging the shipping space.”

However, local insurance correspondent Huatai Marine reported that the Chinese government has said it will relax the regulation under a pilot scheme between a few designated ports.

The trial will run until the end of 2024. It will allow international, Hong Kong and Macau based liner companies to carry foreign trade containers. The trade is limited to the Yangshan port area of Shanghai port, which will be used as a transhipment hub to the ports of Dalian and Qingdao.

To qualify ships much be operating on the international container trades and the cargoes must be foreign trade containerised cargoes.

Under the principle of reciprocity, the country where the international operator is based must also be open to Chinese carriers operating on its domestic trades.

TradeWinds recently reported how the Chinese feeder container trades have been impacted by the Covid-19 pandemic.

In November Singapore-based operator Ocean Network Express (ONE) said it was suspending cargo acceptances for boxes that need onward shipment to their final destinations. It said the feeder ship stoppage was down to quarantine requirements for crews.