China introduces facilitation measures for shipping, freight companies
In response to the pandemic-related consequences and rising freight prices, the CNIA has announced new measures for freight companies. Come read our blog to learn more!
Last June, China's National Immigration Administration (CNIA) announced the rollout of new measures for shipping and freight companies as part of its efforts to further optimize the business environment at ports.
According to the Shanghai Containerised Freight Index, freight prices have increased more than four times from their lowest point last year, making importers doubt the economic viability of buying from China.
Strategic Plan for Key Industries
At a press conference held in Beijing on June 18th, the CNIA announced 16 measures aimed at supporting the development of enterprises, increasing industry competitiveness, ensuring smooth customs clearance at ports, and facilitating access to government services.
In particular, the measures aim at streamlining administrative procedures for foreign cargo vessels and Chinese freight vehicles and drivers frequently crossing land borders, pledging to offer international shipping vessels around-the-clock customs clearance support across Chinese ports.
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In a broader picture, the measures will save international vessels an average berthing time of 1.5 hours in Chinese ports and lower more than 10% of time spent in customs clearance for freight vehicles on land borders.
This is encouraging news, especially given that container shipping has recently begun to decline slightly following its peak this year. According to Drewry, the rate for a 40-foot container shrank by almost $1,000 last week to $11,173, an 8.2% decrease from the prior week—the steepest weekly fall since March 2020 on the busy Shanghai-to-Los Angeles trade route.
“It’s possible some reduction in available supply is curbing container demand and freeing up some of the additional capacity that carriers have added during peak season,” stated Judah Levine, group head of research at Hong Kong-based Freightos. “It is also possible that — with ocean delays making it increasingly unlikely that shipments not already moving will make it in time for the holidays — the price drop also shows that the peak of peak season is behind us.”
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