New 'Free Trade Zone' is Increasing Shipping Options in China

Shanghai FTZ is the first Hong Kong-like free trade area in mainland China

When Premier Li Keqiang announced the Shanghai Free-trade Zone in July, the goal was to make the area around Shanghai the first Hong Kong-like free trade area in mainland China and offer the world "a snapshot of how China can upgrade its economic structure" to compete in the global market. The new FTZ is also helping to break up what analysts call the "duopoly" in mainland shipping lines enjoyed by China Shipping Container Lines (CSCL) and China Cosco on the interport business, which was previously opened only to Chinese-registered vessels.

The Shanghai free-trade zone allows foreign-registered vessels owned by Chinese shipping lines to carry seaborne goods between Shanghai and the other ports along the mainland coast, so now China will now see the domestic container business face competition from smaller shipping companies with only a few vessels. To read more, click HERE.