China mulls protectionist move on container shipping

Shipping companies will be required to report their rates to Chinese officials, whereas previously they only had to report a range of potential rates.

These figures will be monitored by regulators and investigations will be launched if suspicions arise of unfair practices.

Speaking to reporters at a conference on Thursday, director of the water transport department of the Ministry of Transport, Song Dexing said, "if a company is suspected by other players to have slashed or raised rates maliciously when the market is volatile, we can launch an investigation against it to find out if there is unfair competition. I believe the shipping companies will act more cautiously when changing rates."

The move comes after the Shanghai-Rotterdam container freight index more than doubled last week as lines' 1 July rate increases took hold, countering two years of price war and overcapacity induced rate drops. However, a week later the index showed that Asia/North Europe box rates losing $63 to $1,346 per teu, while the Asia- Mediterranean rate lost $24 to $1,362 per teu.

The Ministry of Transport threatened similar stimuli last year in the form of ring fencing certain cargoes for export by state enterprises, but it appears the measures never made it past the State Council.

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