Shanghai is currently struggling in its drive to become the world leader of providing shipping services, with China lagging behind cities London, Singapore and Hong Kong for overall port conditions and maritime services, according to gCaptain.
Zhen Hong, Secretary General of the Shanghai International Shipping Institute, said the goal is for Shanghai to become a global shipping leader within the next five years.
Zhen Hong said: “We may not reach the target with flying colours, but we’ll be able to basically achieve it. Our aim is to have a notable increase in high-end shipping services.”
Parash Jain, a Hong Kong-based shipping analyst at HSBC Securities Asia, said: “Just by handling the largest volume in the world doesn’t necessarily make it the best place from the shipping companies’ perspective.
“On maritime services, Shanghai has miles to cover in terms of ship registration, shipping brokerage, ship management, financing and bunkering.”
London has maintained its position as the global leader in shipping services and currently controls a third of the world’s shipping insurance market.
London’s dominance has been largely put down to its historic maritime strength and long links with merchant shipping law.
Zhang Jieshu, Deputy Party Secretary at the Shanghai Shipping Institute added that the Shanghai zone is testing a policy that allows foreigners full ownership of shipping companies.
Mr Hong concluded: “Ship owners might have more confidence in foreign management companies as they are better organised and have experience. This represents a market opportunity for foreign companies and doesn’t require a lot of capital.”